very bad credit own house that's paid for need repairs ,and cash to fix up credit.
2007-03-11 07:24:35 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
I work for a mortgage broker and some of the lenders I deal with are Hard Money.
Hard money can be ok.
The reason they are good is because they normally have little documentation and credit requirements, they just want to make sure the equity is in the house.
But because of the lower credit score, the rates are going to be higher.
Here is what to look for with Hard Money lenders.
1.) Will they report to the credit agencies. If so, you can help rebuild your credit
2.) What are their penalties for being late once. I know of one company in Florida that for Foreclose after being late just once. You will want to be Leary about that.
3.) What are their pre payment penalties. I have seen one company only give you a 1 year arm with a 3 year pre payment. Basically that company WANTED to forclose. Typically, if a company gives a pre pay, it will not be longer than 3 years and not longer than the locked period on the rate if it's an ARM.
These lenders do offer fixed rates, but it is much higher (and they expect you to refi in a few years after you get stabilized)
2007-03-11 07:34:14 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If you got a smaller loan at 9.99 that would not be so bad. You could likely refinance into a better rate in 6 months if you did in fact fix up your credit. A lot of times it depends on your state, home value, amount of loan, etc. Check out the source website and their free evaluation form. They actually provide or have networks that provide the loans you mentioned, credit repair but also debt settlement that would save you money in the process. Good luck.
2007-03-11 19:44:31 · answer #2 · answered by CALIFORNIA GOLD 3 · 1⤊ 0⤋
Hard money loans have awful rates and awful terms. The rates usually start at 9.99. There are ridiculous closing costs, points and fees that you have to pay. They are deducted from the proceeds of the loan and they almost always have a prepayment penalty of at least 2 years, which means if you decide to refinance within 2 years to a lower rate, they will charge you a penalty to do so. If I were you, I would look into trying to get a more conventional loan. If you have a good banking relationship with your bank or credit union, try them. Or go to www.lendingtree.com. They are a good source for helping you attain loans. I hope this helps.. Good Luck
2007-03-11 14:35:08 · answer #3 · answered by Nicole T 1 · 1⤊ 0⤋
If you can't afford to save money and pay as you go for the repairs, what makes you think you can make payments on ANY loan. That said, if your house is actually paid for, you don't need good credit to get a loan from a regular bank. Your equity will be so high the risk is minimal even if you default.
2007-03-11 15:13:10 · answer #4 · answered by STEVEN F 7 · 0⤊ 2⤋
Yes, And specially hard money is the suitable source for you to get loan. Hard money is only ensuing to getting loan with bad credit. It does not matter even if you have no credit information also. To get a hard money loan you have to contact with verified hard money lenders. Lending Universe Inc. can be your first choice to find verified hard money lenders because there are over 10000 verified hard money lenders in their largest database.
2014-09-29 08:39:15 · answer #5 · answered by ? 2 · 0⤊ 0⤋
If you really need hard money loan and refused by other lendes then hard money loan is your best option. It is a short term loan with high interest.
2014-06-22 20:28:29 · answer #6 · answered by ? 1 · 1⤊ 0⤋
Get a Home Loan the Equity on the house you should be able to get it No harm in trying Good luck
2007-03-11 14:30:03 · answer #7 · answered by pattibcacl 6 · 3⤊ 2⤋