Non-institutional Lending (aka Hard Money)

One of the options that homebuyers and investors have for financing a home is a non-institutional loan, also known as hard money.   Here is an comparison between a typical loan vs. a non-institutional loan.

Example:  $150,000 Home Purchase

                                             Conventional Loan                           Non-Institutional Loan

Down Payment %                           5% -20%                                            30%-35%
Down Payment  $                     $7,500 - $30,000                              $45,000 - %52,500    

Closing Costs/Impounds %                4%                                                      5%
Closing Costs/Impounds $              $6,000                                                $7,500

Principal / Interest                      YES                                                    Interest Only
Rate                                           3.75% - 4.5%                                              10%

Payment Example

Down Payment + Closing costs      $36,000                                       $57,500  

Payment                                        $555.75/month                              $833.33/month

Plus Taxes & Insurance estimated   $170.00                                      $170.00

Total                                                 $725.75                                     $1,003.33


Interest rates and fees are for illustrative purposes and are subject to change and are on approved credit.  Clients that wish to invest using non-isntitutional loans must read and understand the terms of the loan, especially the renewability of the loan and the term.  Non-institutional loans should be used for a short term and paid off or replaced with a traditional loan as soon as the borrower qualifies. 

Non-institutional loans must comply with Local, State and Federal laws.  These loans vary greatly in terms, rates and fees.  These are given as illustrative examples only.  For specific information about non-institutional loans, feel free to contact Brent Wood at 702-629-9555 or bwood@allwestern.com

Brent A. Wood

All Western Mortgage

Cel. 702-629-9555

 

Branch Office

770 Coronado Center Drive #160 Henderson, NV 89052

 

Corporate Office

8345 W Sunset Road 2nd Floor Las Vegas, NV 89113 

 

Fax 702-948-5196

 

Please visit my blog: www.mortgagefinancenews.blogspot.com 

Nationally Registered Mortgage Agent, B.S.B.M.  NMLS ID 327581