Regulations for Texas Hard Money Lender

You may have heard that hard money lenders Texas do not need a license. But is there any truth to this? It’s true that private money lenders Texas don’t need one in the commercial sector. But do hard money lenders Texas need a license to lend for residential properties? Hard money can fall in the gray. The answer will vary depending on the state where the property is located. Although there is grey area, it is always best to find a hard money lender Texas that has a good reputation and is licensed as mortgage brokers.

If private money lenders Texas lend to a business who fixes up a residential property then it is many times completely valid to consider the loan a commercial loan. That means the commercial loan rules could apply. If hard money lenders Texas lend to an owner occupant for their primary residence they are definitely in the residential space and need to be licensed and also follow all the regulations. Most private money lenders Texas will not lend on residential property that will be owner occupied. That should give you a clue as to what most hard money lenders Texas think about the residential loan market and the regulations. Also, Texas hard money loans tend to carry a higher interest rate and are usually not meant to be a long term mortgage solution. Instead they are a way to purchase a fix and flip or make quick cash by reselling.