Additional Options

A hard money loan is similar to a traditional refinance accept your credit will not be a deciding factor. Equity in the property value and monthly household income are the determining approval factors to receiving a hard money loan, not credit score. Typically, a hard money lender will require the appraised value of your home to have at least 35% equity.  Secondly, the combined household income will be used to determine if the payments for the hard money loan are affordable.

A Private Money Refinance is exactly like a Hard Money Refinance, except it’s with a private individual, rather than a bank or lender.  Generally, you will need a minimum of 20% equity and we have seen rates as low as 7% with a private money refinance.  Even if you don’t have enough equity, we have seen lenders agree to a reduced payoff amount to allow a refinance.

 Be careful with private money lenders because they do not always have your best interests at heart.  If you fail to make a payment, they can take the home away almost immediately. 

Only about 15% of homeowners will qualify for a hard or private money loan, so make sure you have a backup plan (like a federal hardship review) solidly in place, even if you get a pre-approval for a hard or private money lender.  

Even when you find someone that says they can get you approved, you still risk losing your home at the last minute.  Mortgage brokers are notorious for telling homeowners they are approved, only to turn them down at the last second with a looming auction date.  

We have a group of trusted lenders that can determine if you're qualified for a foreclosure loan typically within 48 business hours so that you are not strung along into the "11th hour" when the bank is ready to take back your home.