Posted on: 27th Jul, 2011 01:26 am
My credit is not up to the mark and thus I will have to go for a hard money loan. I wanted to know what fees a mortgage broker can charge on such a hard money loan.
Well… hard money loans are made by private investors who are not bound to follow the standards of state or federal minimums for fees. So, the fees that they can charge will be 4-8 points higher depending on the deal compared to a normal conventional loan. Unless you feel that the loan is too necessary for you, its better to not go for it. Moreover, the loan will probably be for a short term period.
Hi Krueger, there are many options in the private financing market. There are lenders who charge an arm and a leg and there are lenders who offer very competitive rates and fees as your conventional lender would. If you would like, give me your state and scenario and I can point you in the right direction. Thanks
Chris, that's a valuable service you can render if you've got those kinds of contacts. There are so many folk out there these days who need hard money lenders to step in because of their inability to qualify for conventional, government, etc.
There is a great person for SFR's in California only, and does some private financing for 5+ apartment units nationwide. Others offer more traditional hard money, but not too expensive. If anyone needs info, please let me know.
There are other option aside from going for a hard money. But if you insist for a hard money, the fees that you have to pay depends on what country you are in.
Gosh golly gee whiz; other than that I'm speechless on the finality of the topic.