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.