What are the 4 C’s of of hard money lending?

Q: What are the 4 C’s of of hard money lending?

The 4 C's of lending in order of importance are: Collateral: This is the asset (e.g., real estate) securing the loan, against which the lender will have a 1st lien/mortgage/deed of trust. Character: Does the borrower have good characteristics, communication, and the ability to perform and not default on the loan? Capacity: The borrower's ability to perform on the loan. Do they have enough cash down payment and reserves? Do they have the ability to complete the construction project? Credit: The borrower's credit history and score indicate their ability to repay debt.

The 4 C’s of lending in order of importance are:

Collateral: This is the asset (e.g., real estate) securing the loan, against which the lender will have a 1st lien/mortgage/deed of trust.

Character: Does the borrower have good characteristics, communication, and the ability to perform and not default on the loan?

Capacity: The borrower’s ability to perform on the loan. Do they have enough cash down payment and reserves? Do they have the ability to complete the construction project?

Credit: The borrower’s credit history and score indicate their ability to repay debt.

Shane2025-02-07T14:20:04+00:00Maryland|