 Sam
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Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
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 Posted: Thu May 27, 2004 11:21 pm Post subject: Hard Money Mortgage |
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Hard Money Mortgage is a kind of mortgage that is given in return for cash by a non institutional lender. In the beginning, the term was used to deal with any arrangement that dealt with cash or direct currency. It still means cash, but in mortgage terms it means cash equity a person has in his home. Here the credit history of borrower is not normally taken into consideration, in making a loan and the loan is given at a high rate of interest.
This type of mortgage is under written with a condition, and the value of property is considered as primary criteria for getting it. Private loans and some commercial non conforming loans are considered for this type of mortgage. It is also known as high yield mortgage.
For example, Shawn has 35% equity in his residential property, and the property is in good shape, he also has the ability to pay monthly payments, so he is eligible for getting hard money mortgage. |
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