Best Hard Money Loans
This piece walks through how underwriting actually treats these loans, what structures exist, and where the general rules break down.
This piece walks through how underwriting actually treats these loans, what structures exist, and where the general rules break down.
If you’re looking at a private money mortgage for the first time, the most useful thing to understand up front is what the lender is actually underwriting.
– DSCR qualification runs on the property’s rent-to-payment ratio, not the owner’s personal income or debt-to-income ratio.
The lender looks mainly at the property’s value and the deal’s math, not the borrower’s W-2 or personal debt-to-income ratio.
Which one you get depends on occupancy, title, and whether the property produces rent at all.
Conventional lenders lean on specific title and payment-history tests.
It’s a business-purpose loan built around the deal, not the borrower’s paycheck.
Can A Bank Refinance An Investment Property — The Quick Read: Yes.
A line against your own home runs through ordinary owner-occupied underwriting.
Expect a lower combined loan-to-value ceiling, a higher credit-score floor, and a title requirement that rules out LLC-held rentals outright.
– “Jumbo” in hard money means a large dollar amount, not a regulatory threshold like the conforming loan limit that governs bank mortgages.
Hard Money Lending Returns Calculate — The Quick Read: through a chain of leverage ratios, not one formula.
Pulling equity out of your primary residence to fund a new rental purchase is a different transaction with its own seasoning rules.
Most borrowers ask this question backward. They want a single percentage they can compare against a bank quote.