Hard Money is the new Subprime. As in the past, stated income liar loans and and bad credit are allowed.
Palo Alto, CA (PRWEB) March 26, 2013
Much of the recent "Great Recession" was blamed on Subprime mortgages and what is commonly known as liar loans. Liar loans are loans made to people without reviewing actual documentation.
The subprime lender was a resource for those who have a poor credit history, lack sufficient funds for a down payment, or are unable to prove their income. These borrowers do not meet industry standards, they are high risk, and thus interest rates are higher than with a traditional lender. Research has shown that 96% of the operating Subprime lenders open in 2005 are now out of business.
In the past Subprime lenders and hard money lenders were often confused. Contrary to popular belief, they do not refer to the same types of financiers. Both traditionally serve as lenders for people who do not qualify for traditional loans through mortgage companies, credit unions, and banks. However, hard money lenders deal with much more extreme situations.
In the past Hard Money lenders generally lent to those that others lenders did not. For example, a Hard Money lender always considers a borrower who is facing foreclosure. Hard Money lenders are considered the last stop on the train. They do not base the loans on the borrower's credit history but rather the homeowner's equity in the property. The loans are meant to be short-term.
TODAY, Due to the increasing number of individuals with poor credit, there is an increasing demand for this Subprime type lending but with no actual Subprime lender to fill this spot, Hard Money Lenders have filled this void.
Today 3.7% of all new loan originated loans are hard money. Everyday, rates are coming down with Loan to value's rising up. Alternative Lending Magazine has compiled the largest list of New Subprime Hard Money Lenders and validated each and every funding programs.
AlternativeLendingMagazine.com is an expert in the field of funding programs and with 5,112 verified funding programs represented by over 392 direct lenders, the free service for Real Estate Professionals, or the actual borrower is the best on the web. The mainstream popularity of alternative lending and alternative money loans is growing daily as rates push down and Loan to Value pushes up. Alternative Lending Magazine is averaging around 104 new funding program verifications a week.
All Program Match data is compiled through the use of accurate, real-time, internet-based data collected from housing funding sales trends and lender behaviors such as recorded deeds and final closing statements.
Alternative Lending Magazine is the unconventional guide to the unconventional lending market. This cutting edge interactive monthly magazine that empowers actual funding through program matching rather than lender listing uses a proprietary technology system with an automated underwriting process that evaluates consumers' unique non-conventional loan request and their capacity to afford it. The proprietary decision-making technology is based on program matching, property eligibility, underwriting, ability to pay review, lender analytics, strategy and loan scenario modeling. The system will match the actual program that will fund a loan rather than give a list of numbers to call.
To find out about all the New Subprime Hard Money Lenders or become a regular subscriber please visit AlternativeLendingMagazine.com.