Types Of Lenders??
I have heard conflicting opinions on the definitions of different types of lenders... Maybe you guys can clear this up for me.
Im confused between the definition of Soft Money Lenders, Hard Money Lenders, and Private Money Lenders.
I thought hard money was private lenders charging high points/interest. But someone else told me it wasnt. I also thought soft money lenders were banks, and other "traditional" lenders.
Perhaps the experts here could shed some light on this subject for me
Thanks!
hard money lenders generally do have high interest rates and many points. They also have established criteria that they use for qualifying. Private money is just that...private. It could be Aunt Matilda's inheritance made available for interesting investing. To that end, the rules that govern hard money and traditional lending do not apply here. They can charge your whatever they feel like charging (1/2 of the profit or whatever). Soft money applies to conventional lenders (banks, etc) who have to follow lending guidelines.
I work with both hard money lenders and conventional lenders. Private money is a whole other ball game.
Pat
hard money lenders generally do have high interest rates and many points. They also have established criteria that they use for qualifying. Private money is just that...private. It could be Aunt Matilda's inheritance made available for interesting investing. To that end, the rules that govern hard money and traditional lending do not apply here. They can charge your whatever they feel like charging (1/2 of the profit or whatever). Soft money applies to conventional lenders (banks, etc) who have to follow lending guidelines.
I work with both hard money lenders and conventional lenders. Private money is a whole other ball game.
Pat