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This matrix should be used to
find general program information/
product types, unusual property or
loan characteristics. Please consult
the Prime 1st Mortgages matrix for
detailed program criteria.
COMPANy NAME
1 Acreage: Max acres on res. property (U=Unlimited)
2 Condo: Non-Fannie Mae/Freddie Mac warrantable
3 Condo: With only 2-3 units
4 Condotels at resort destinations
5 Co-ops
6 Dome homes
7 Land: Purchase of subdivided lot
8 Land: Purchase of undeveloped raw land
9 Log homes
10 Manufactured home (post-1976)
11 Second dwelling on single tax lot
12 Zoning: Non-owner < 5 units: Zoned other than residential
PROPERTy-RELATED ITEMS
123456789101112
13 Aliens/foreign nationals: No green
card, second home
14 Aliens/foreign nationals: No green card,
No-income verifier loans available
16 Corps., trusts, partnerships and LLCs
17 Minimum loan amount
18 Non-owner: More than 10 financed prop-
erties allowed regardless of loan amount
19 Ratio: Combined ratios are allowed
with non-occupant co-borrower
20 Remodel: Conventional at after-
remodel value
MISCELLANEOUS
13 14 15 16 17 18 19 20
PROGRAMS AND OPTIONS
21 Bridge loans
22 Freddie Mac: Loan Prospector (LP)
23 Freddie Mac: Affordable Gold
24 Fannie Mae: Desktop Originator (DO)
25 Fannie Mae: MyCommunityMortgage
26 Fannie Mae: Desktop Underwriter (DU)
27 Govt.: FHA Direct Endorsement
28 Govt.: VA
29 Lock: Longest lock available (number of days)
30 Lock without property address
31 Pledged asset option
32 Reverse mortgages
33 Tenants-in-common ( TIC)
34 Rural property/part-time farm
21 22 23 24 25 26 27 28 29 30 31 32 33 34
The Funding Pool
866-210-0850
www.fundingpool.net
10
Y
60K
Y
YYY60Y
CO ID UT
Locking without property address avaliable with a $400 commitment fee. Broker package can be found at www.fundingpool.net.
TMSFunding Wholesale
888-371-2989
www.tmsfunding.com
Y
Y
NJ NY
Contact us for information about all of our unique products. See: www.tmsfunding.com. Please call for additional co-op requirements.
USA Direct Funding
888-697-3860
www.usadirectfunding.com
U
Y
Y
YY
Y
Y
Y
YYY58
CA ID OR WA
1 day off the market, USDA, jumbo, Homepath; much more. Ask about our Mortgage Assurance Program at no cost to you or your borrowers!
Locally owned and operated.
Tell lenders you found them in Scotsman Guide
Scotsman Guide makes every attempt to ensure the quality of matrix and directory information, which all listed lenders verify or update monthly. Because of the production cycle and dynamic nature of the industry, loan product
terms and availability may not reflect the latest changes. Please contact lenders directly for the most-recent program details. If you believe data is inaccurate or misrepresented, please e-mail: matrixfeedback@scotsmanguide.com.
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By Yanni Raz
CEO
HML
3 Hard-Money Basics
Hard-money loans may be the answer to your clients’
investment needs
As more and more properties are foreclosed and made avail- able to the market, many undaunted real estate investors are busy
searching for new acquisition opportunities. Even in a depressed market,
these opportunities can be good ones,
but brokers may have difficulty locating the right lender for their client’s
deal, especially if it is a hard-to-fund
property.
Many mortgage brokers and originators are finding that hard-money loans
can be a boon to their clients and their
investments. Keep yourself informed
and competitive by knowing three hard-money basics.
1. What lenders want
In short, what most hard-money lenders want is equity — and lots of it. If
you’re working with a deal that includes more than 50 percent equity in
the property, you should be able to find
a hard-money lender for your client’s
purposes.
you may believe that most properties don’t have significant equity
these days, but properties being offered by banks may in fact have sizeable amounts of equity. Some lenders
will consider the gap between existing
value and purchase price to constitute
equity, so in these cases, foreclosed
homes can have enough value to qualify for a hard-money loan.
2. Rates and points
Every hard-money lender will charge
different points and interest rates, but
in many cases, you’ll find that lenders’
conditions are relatively similar. Ideally,
a hard-money direct lender will offer no
more than a charge of 2 points and an
interest rate of 10 percent.
Hard-money lenders will never lend
100 percent of a deal’s total finances,
but in some cases, a lender may pro-
vide 100 percent of the after-repair
value (arV). That said, these cases are
not the norm by any means; all hard-
money lenders will carefully examine a
property and its equity to determine if
the deal qualifies for a loan as high as
the property’s total arV.
3. Credit and assets
a borrower’s credit is not always an
important issue for hard-money lenders, but they will look at a prospect’s
credit if they suspect that the borrower
may not be able to make adequate payments and will soon be headed toward
foreclosing on the loan.
“Ideally, a hard-money
direct lender will offer
no more than a charge of
2 points and an interest
rate of 10 percent.”
Even if a prospect’s credit isn’t significantly considered, hard-money lenders will consider that prospect’s assets
thoroughly. Many hard-money lenders
will want you to show that your client
has other finances or equities that could
be liquidated in a worst-case scenario.
regardless of the source of your clients’
finances, hard-money lenders will want
to be certain that their borrowers are
able to make their payments on time.
The loan that a hard-money lender
provides also will be affected by whether
or not the investment will be an owner-occupied property. In general, hard-money lenders are more cautious about
owner-occupied residential properties,
especially if they could fall into the realm
of high-risk, “Section 32” mortgages.
• • •
In these hard economic times, bor-
rowers need to know about the full
variety of loans available to them, and
hard-money loans may be exactly what
they’re looking for. •
Yanni Raz is CEO of HML and has been a
hard-money lender for more than 10 years.
raz was a real estate broker for five years
before he partnered with a group of investors from California and began assisting real
estate investors in financing commercial
and residential projects. He writes about
real estate financing for magazines, blogs
and other online news outlets. reach raz
at info@hardmoneyloans.org or (818) 308-
4443. Visit hardmoneyloans.org.
