What "No Hard Credit Pull" Means
There are two kinds of credit checks. A hard inquiry happens when a lender pulls your report to decide on a loan you’ve applied for. It shows up on your credit report for up to two years and can lower your score a little. A soft inquiry doesn’t affect your score at all.
Larry doesn’t run a hard pull, so applying with him won’t add a hard inquiry to your report.
Why Larry Can Lend This Way
A bank lends mostly on you, so it needs your credit, your income, and your debts. Larry lends mostly on the property.
He values it himself from comparable sales and lends a percentage of that value. First-time borrowers typically get 70% to 80%, and raw land usually sits at 40% to 50%. The equity left in the property is what protects the loan, which is why your credit report isn’t the main factor.
Larry also doesn’t lend on after-repair value. He lends on what the property is worth today, so the cushion is real from day one.
If Your Credit Isn't Great
Because the property is the main factor, a lower score doesn’t carry the same weight it does at a bank.
It can still affect how much you borrow. Good credit is one of the things that can push your loan above the typical 70% to 80% range, along with being a repeat borrower or bringing a prime property. If your credit is weaker, plan to bring more of your own money into the deal.
No Credit Pull, No Appraisal
Larry skips both. He values the property himself, so you don’t pay for an appraisal or wait for one, and there’s no hard credit pull. That’s a big part of why he can give you a decision the same day, with closing as soon as the next day.
What You Do Sign: The Personal Guarantee
Every Larry the Lender loan requires a personal guarantee. In plain terms, a personal guarantee generally means you’re personally responsible for paying the loan back if the deal doesn’t. It’s the trade-off for a loan that doesn’t lean on your credit report. Read it carefully, and have your own attorney review it if you have questions.
Everything Else About The Loan
The rest of the terms are Larry’s standard terms: 12.99% interest-only, 2 points on a 6-month loan or 3 points on a 12-month loan, and loans are renewable. There’s no application fee, no appraisal fee, and no prepayment penalty, and the minimum loan is $100,000.
