Many hard money mortgages are made by private investors, generally in their local areas. Usually the credit score of the borrower is not important, as the loan is secured by the value of the collateral property. Typically, the maximum loan to value ratio is 60-65%. That is, if the property is worth $100,000, the lender would advance $60,000-65,000 against it. This low LTV provides added security for the lender, in case the borrower does not pay and they have to foreclose on the property.
