Reading between the lines on Borrower loan scenarios and excuses – how it affects underwriting and loan preparation Originating and Servicing Hard Money Loans requires active listening to a Story. There is typically a reason why the loan is not being funded conventionally. Each hard money loan’s unique scenario potentially stretches guidelines as oftentimes…
How straight talk clears confusion Transparency remains one of the many aspects I enjoy in the Hard Money Loan and Trust Deed Investment Marketplace. In some recent reading, I read a Quote, “To Be Unclear is to be Unkind”. I wanted to spend a few moments to delve into this Quote to clarify exactly what…
What does it mean to trust but verify during the underwriting process? I enjoy meeting people and I prefer to go through life trusting people when we first shake hands. I always like to assume that people I meet are generally good people. However, these days our motto is and has to be “Trust…
How is Hard Money underwriting more art than science? High volume Conventional lenders world use Automated Underwriting (AU) engines to determine if a borrower qualifies for a loan. Fannie Mae’s Desktop Underwriter (DU) and Freddie Mac’s Loan Prospector digest reams of quantitative data and spit out the yes or no decision on a residential…
What does “Stated Income Loan” mean? Hard Money and Non-Prime Lenders offer “Stated Income” loans to fill a gap on situations where conventional loan standards deny the loan. Today’s blog will demystify “Stated Income” and describe what these loans are and are not. Importantly, we will also discuss the opportunities and pitfalls for borrowers…
The “5 C’s of Credit” are the five key elements a borrower should have to obtain credit. These same 5 “C” items are critical for Hard Money loans as well as conventional loans. Successful Mortgage Brokers understand the 5 C’s of Credit and know how to apply their scenario to a conventional or hard…
What is needed to get approved for a hard money loan? As a Real Estate Investor or Mortgage Broker, many times you will need to act quickly to buy or assist someone buy or refinance real estate. When time is of the essence, Hard Money financing is the best and fastest alternative. Below are…
What is needed to get approved for a hard money loan? Real Estate Investors can often find better loan terms by finding a Hard Money Lender through a Google Search or word of mouth. The Internet disintermediates middlemen and, with appropriate search criteria, can allow an investor to find a Direct Lender. These real…
10 borrower characteristics that should be considered while underwriting a hard money loan Real Estate provides the collateral for most hard money loans however there are many borrower characteristics that should be considered while underwriting a loan. One of the best ways to avoid fraud and determine if a Hard Money Loan makes sense is…
What steps should a self-employed borrower take to get a loan? Self-Employment carries many benefits including making decisions, schedule flexibility and not having to work for an incompetent Boss. However there are some disadvantages to generating your own income when it comes to applying for a home loan. Today, under new Federal Regulations, borrowers…