Jacqueline O'Shaughnessy
Jacqueline@jfkfinancial.com
(702) 429-3994
JFK Financial Inc
(702) 895-7199
NMLS #382900
Co NMLS #117404
Agent 6603

The Basics of Private Money Mortgages
What is a Private Money Mortgage?
Homebuyers traditionally seek a bank to finance the purchase of their new home or investment properties. Private Money Lenders take the place of the bank and close the loan in the same manner as a bank. Private Money Lenders are held to the same laws that the banks are held to. A title company is used for every transaction and at worst case scenario they have to use the same procedure for a foreclosure.
Private money mortgages (also called Hard Money Loans, Trust Deed investments, etc)
The Direct Lender typically analyzes the value of the property - Generally we don't order appraisals. Purchase price establishes the value.
Loan Terms are negotiated based on the borrower & the property
Loan Terms
Investment property (non owner occupied) -
70% LTV (Loan-to-Value) – some properties up to 80% LTV
8-12% interest only payment
12-60 month terms based on property and borrower
No prepayment penalty
No credit requirements
Commercial Property – (standard loan limit <$2mm)
70% LTV (Loan-to-Value)
10 - 12% interest only payments
12-60 month terms based on property and borrower
Can have a prepayment penalty if Lender Desires
No Credit requirements
Owner Occupied –
70% LTV (Loan-to-Value)
10-12% interest amortized for 30 year term with 5 or 7 year balloon
No prepayment penalty
No credit requirements