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…

Countrywide House America Loan Qualifications

Countrywide House America customers must be able to meet traditional loan qualification standards with these exceptions: they can use cash from relatives or other non-traditional sources for their down payment, they can count non-traditional income sources towards their debt-to-income ratio (such as money made by family members), and they can use alternative payment records (such as rent payments or utility bills) to supplement an un-established credit score.

Countrywide House America Loan Terms

Aside from the altered qualifications, these loans are similar to traditional mortgages. Lenders generally charge a higher interest rate for borrowers using non-traditional qualifications.

Applying for a Countrywide House America Loan

You can apply for a Countrywide House America 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.