DEAR BENNY: just what is a “hard cash” loan? вЂ“Irene
DEAR IRENE: Technically, are difficult cash loan is that loan that is offered in return for cash, in place of to aid a customer in buying a home. The latter will be called a “purchase cash” home loan.
Hard-money lenders try not to depend on the creditworthiness for the debtor. Rather, they appear to your worth of the house. The lending company really wants to be sure that if the debtor defaults, you will see adequate equity in the home over and above the quantity of the mortgage. Properly, you simply will not obtain a hard cash loan of 80 or 90 % loan to value; typically, they’re going to vary from 50 to 70 per cent loan to value.
Such loans are thought “loans of final measure.” You may be forced to negotiate with a hard-money lender, who often are private individuals loaning money from their pension plans if you are unable to get a conventional loan from a bank or mortgage broker.