The most evil thing has infected the million dollar + market of Dallas. Commercial lenders have gotten into the act.
1. They quote "hard money" rates if they'll even entertain a mortgage for in excess of, say, $750,000. So we're talking about an interest rate of more than 12% in an otherwise 5.5% market. And the loan to value requires at least a 30% cash investment by the borrower.
2. They are forcing mansion builders to take huge discounts on their inventory, less they will see their property posted for foreclosure. The huge discount compensates for the buyer having to finance at hard money rates.
I have found a bit of loan money at reasonably conventional terms and rates, and my plan is to reserve its where abouts for my own clients.
But this foolishness by lenders has got to stop.
BILL CHERRY, REALTORS
DALLAS - HIGHLAND PARK
214 503-8563
Bill,
Well said; however I don't think it will ever stop. Greed is what it is.