Hard money loans are high-interest mortgages available from private investors. Desperate borrowers with poor credit scores, bankruptcies, no verifiable income, or too much debt often take out hard money loans when they are unable to qualify for traditional mortgages. Hard money becomes a last resort when borrowers cannot meet the lending standards set by banks or government sponsored enterprises such as Fannie Mae and Freddie Mac.

How Hard Money Loans Work

Private investors are willing to create hard money loans in return for charging a very high interest rate (often about 11.5% plus five points for residential home purchases). You meet a minimal set of requirements, make a monthly payment to the investor, and find a way to either sell your property or pay the balance when it becomes due. Hard money loans use the borrower’s property as collateral. They often offer interest-only payments and tend to have shorter terms (usually fifteen years or less). You can take out a hard money loan for either a home purchase or a second mortgage. Read more…

Wells Fargo Alternative Documentation Qualifications

Borrowers must meet traditional lending standards with the exception of proving their income. To prove income, they must submit six or twelve consecutive months of their most recent bank statements. Income is determined by the monthly average of the money deposited.

Wells Fargo Alternative Documentation Loan Terms

The alternative documentation solution may be applied to any personal home loan including both fixed-interest and adjustable loans. Borrowers should expect to pay a higher interest rate than may be offered for traditional qualifications.

Applying for a Wells Fargo Alternative Documentation Loan

You can apply for a Wells Fargo Alternative Documentation Loan by contacting a mortgage broker or calling Wells Fargo directly (1-877-937-9357). You can also visit their website for more details about this program.

Countrywide Fast and Easy Loan Qualifications

Fast and Easy borrowers must meet the standard mortgage qualifications with these exceptions: they are only required to turn in limited documentation, there is no income verification, and there is only verbal job verification. Borrowers must have extremely high credit scores to qualify and put at least 5-10% down.

Countrywide Fast and Easy Loan Terms

Borrowers can use the Fast and Easy program alongside almost any loan including ARMs, fixed-rates, and interest only. Borrowers generally pay for their convenience with a higher interest rate than they would receive through a traditional program.

Applying for a Countrywide Fast and Easy Loan

You can apply for a Countrywide Fast and Easy Loan by contacting a mortgage broker or calling Countrywide directly (1-888-231-7074). You can visit their website for more details about this program.