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Residential Hard Money
The Residential Hard Money industry has gone
through significant changes over the past year. At no time in the history of the United States
has there been more sweeping changes in the sub prime mortgage market. Foreclosures rates are at
a 40 year high and the real estate market has seen deep declines in property values through out
the country. The real estate market has always had hills and valleys but never like what we are
experiencing today.
Hard money mortgage lending is more relevant in today's market because the
sub prime market has literally disappeared. Hard money is the new sub prime product replacing many
of the exotic interest only and negative amortization loans.
Interest rates vary along with origination fees. Typically, 5 points origination and 11% interest
rates are common on a first trust deed. There are some lenders who prefer to offer a home equity
line of credit rather than a first trust deed for owner occupied properties. In general, the loan
to value ratio is about 60%, depending on the market conditions.
Pitbull Mortgage School provides hard money residential training nationwide at our national hard money conference.