|
Hard money lenders are lending companies, or individuals, offering a specialized type of collateral backed loan. They tend to lend short-term capital (also called bridge loans) that provide funding and or cash, based on the value of the collateral. Hard money lenders can and will utilize all types of collateral- cars, boats, land, airplanes, hard assets, paintings, etc. to complete the loan. For the purposes of this page, will narrow to mortgage or home loans. Hard money lenders tend to focus on the value of the collateral rather than the borrower's ability to repay, FICA score, debt to income balance; instead of based on their own personal income or other assets, as is common with traditional lenders. Hard money lenders typically charge much higher interest rates than banks because they fund deals that do not conform to bank standards such as verification of borrower's income, assets, or credit score. Hard money lenders will offer a range of requirements on how much they will lend (loan to value), what types of real estate they will lend on (commercial, residential, multi-family, land) and minimum and maximum loan sizes. Hard money lenders that lend on residential property must be licensed through their state regulatory agency and through the National Mortgage Licensing System (NMLS). Borrowers should verify the lenders license through the NMLS in order to prevent problems at closing, as many states require the lender's license number to be listed on the loan documents. Not having the license number on the loan documents could prevent the loan from closing. == Hard money risk == Hard money loans are more expensive than traditional loans because they are not based upon traditional credit guidelines which protect investors and banks from high default rates. As hard money lenders may not require the income verification that typical lenders require, they may experience higher default rates (and, thus, charge a higher rate of interest). Individuals and companies may opt to take a hard money loan when they cannot obtain typical mortgage financing because they do not have acceptable credit or other documentation typically required by a conforming loan. However, federal law now requires that all hard money lenders verify "ability to repay" - per the Dodd-Frank Act of 2010 - on all residential property loans. In order to prove "ability to repay", licensed hard money lenders will also be asking for documentation of income. This documentation may not be as stringent as the documentation required for a conventional loan, and the hard money lender may look at the numbers differently, but more than likely, borrowers will still have to provide a tax return and bank statement. Term of loan: hard money loans are typically of a shorter term than conventional loans, although you can find terms of up to 10 years depending on the lender. Because of the shorter term, borrower should ensure that they have the resources necessary to pay off the loan when it becomes due. Prepaid interest: per the Dodd-Frank Act of 2010, it is illegal for a borrower who will be occupying the residential property to pay more than two months of interest in advance. That means that the lender cannot require that you pay for a full year of payments in advance - called "prepaid interest". However, the lender can require this on a commercial property loan. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Hard money lender」の詳細全文を読む スポンサード リンク
|