Qualifying for Hard Money

You do not need great credit to get hard money, and your income is not as important as it might be with other loans.

It may even be possible to get hard money without verifying credit or income information, but it’s rare. Lenders will be interested in your finances, but your collateral is the most important thing.

Most hard money lenders keep loan-to-value ratios (LTV ratios) relatively low. Their maximum LTV ratio might be 50% to 70%, so you'll need assets to qualify for hard money. With ratios this low, lenders know they can sell your property quickly and have a reasonable shot at getting their money back.

In many cases, hard money is used to purchase and improve property. The loan-to-value ratios generally use a property's After Repair Value (ARV) - an estimate of how much it should be worth after the improvements are done.

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