Out of the Box

Out of the box loans: Hard Money

With today’s lending turmoil, lenders have tightened guidelines. Loans which were approved easily just a short while ago are now being declined. If you don’t meet all the standard criteria such as provable income, provable assets and a LTV below 90%, conventional loans don’t exist. Even loans that were called sub prime no longer exist. Mann Mortgage has relationships with private money investors. These lenders are referred to as “hard money” lenders. Most of these types of lenders are primarily collateral based. Low LTV’s (loan to value) generally not to exceed 65% are the main criteria. These loans can be structured as balloons, interest only, one pays, Arm’s etc. Most loans will range from 8%-15% and 4 points and involve high fees. Properties may be bare land, housing or commercial Real Estate.

There are many individuals who are afraid to “shop around” for a mortgage. They are simply happy that they can buy a house at all. This feeling is magnified if they have real or imaginary “skeletons in the cupboard” in the form of impaired credit history.

Other have had financial difficulties in the past often connected to marital splits, business situations or medical problems and are now model payers. Others may have mortgage arrears but are adopting an attitude that the problem will go away. The answer is that it won’t and you would be advised to seek guidance as soon as possible.

For all of the above, mortgages are possible but expert guidance is required. At Mann Mortgage we realize that not every customer is “A” perfect and may not qualify for a regular conforming loan. In fact, many individuals have “not so perfect” credit, poor ratios, or income that can not be verified. This does not disqualify you from being able to obtain a mortgage loan. We will do our best to get you the lowest interest rate possible for your situation.

These types of loans work differently than regular conventional loans in that the loan-to-value and the interest rate are based on the amount of risk the investor has to take in order to approve the loan. There are a few different ways the investors assess the credit risk on each loan, so to find out where you stand, please contact one of our loan representatives and they will be happy to assist you. Unsecured Business lines of credit are available.