Are hard money loans legal?

6
Shea Osinski asked a question: Are hard money loans legal?
Asked By: Shea Osinski
Date created: Wed, Mar 24, 2021 12:45 AM
Date updated: Thu, Sep 15, 2022 9:18 PM

Content

Video answer: What a hard money lender looks for when loaning you…

What a hard money lender looks for when loaning you…

Top best answers to the question «Are hard money loans legal»

In short, yes, hard money loans are legal… Like any lender, there are restrictions on the type of deal a hard money lender is interested in funding and it's important to know what types of loans a hard money lender won't fund.

Video answer: Than merrill explains how to find private & hard money…

Than merrill explains how to find private & hard money…

5 other answers

While there are many legitimate lenders of hard money offering loans, there are also predatory ones who try to take advantage of borrowers. bridge loan home loan mortgage

In short, yes, hard money loans are legal. If you visit a real estate investor meetup, you’ll notice hard money lenders have mixed reviews.

Many of those lenders allow potential borrowers to see the loan information (rates, terms, and limits) without a hard credit check, meaning you can shop around without damaging your credit score. Though few lenders specifically call out “legal fees” as a reason for a loan, many lenders will allow qualifying borrowers to use the loan funds in any way they choose .

Hard money lending can often be associated with specific legal issues. These include: Licensing: Hard money lenders need to obtain the proper licenses and certification in order to lend the money. For instance, they will need special licensing if the property to be used as collateral is residential property. Without proper licensing, the loan will not be considered valid.

A legal hard money lender will not charge up front fees unless there is a solid agreement and then only for services they actually perform while charging reasonable and customary fees. Know the Laws before You Sign any Contracts

Your Answer

Video answer: 1099 or 1098 hard money lender

1099 or 1098 hard money lender