This question is often asked more than any other when talking about San Diego Hard Money. To start, hard money is also commonly called private money.
In this article you will learn about a San Diego hard money loan and the different aspects it takes to complete one. Refinance loans, development loans, purchase transactions and processing of the loan will be explained.
1. What is a hard money loan?
Private money loans, also referred to as hard money loans, represent a family of loans where the capital comes from a private source. Such sources can include any sort of private entity, like individuals, private corporations, and partnerships.
Unlike conventional loans from banks, where loan to value ratios can be as high as 97% (in the case of FHA financing), the LTV of hard money loans can be significantly lower, say 55-75%. This affords the private money investor with more security in the form of equity in the underlying property.
Once upon a time you could walk into a bank and get a loan on a handshake and your honor. This was when you actually dealt with a person and were seen as more than a number on a spread sheet. Now it?s all about your FICO score.
We can talk about several ways to review your credit but to keep it simple we are going to focus on the credit model created by Fair, Isaac Company. Better known as FICO.
When your home is on the verge of foreclosure, you certainly will do anything possible to save it. But the problem is how you will do it. The first thing, among many, is going to your lender/banker and asking for help.
