Well, it depends. Ask your prospects if they have been to the bank. If they say yes ask them why they were turned down. We all know that banks are not really lending and that hard money such as myself will start at about 12%. However, you want to be fair and you want them to be able to make their payments. Don't lend to someone who can't give you a decent down payment. You also need to check their reserves to make sure they will be able to make the payment for at least six months. Once they 'own' it they may be able to refi and let you off the hook. Most banks are looking for about two years seasoning for a refi. We offer about 50% LTV and seasoning is less here. We we are an equity lender.
May 8, 2011