Hard Money Loans

How do Hard Money Loans Work?

A hard money loan is funded by private investors for a term of about 12 months. Sometimes the term can be extended to 2-5 years. The amount of money the borrower can receive from the lender depends on the value of the property rather than the borrowers credit.

A hard money loan is a good option when you need a loan for a short period or when you are not ready to go through a lengthy and tedious procedure required by banks. Hard money loans are perfect for the following situations:

The Benefits of Hard Money Loans for Investors

The credit score is not a crucial factor. Hard money lenders look at the value and equity of the investment property rather than on credit score.

• Flexibility and Speed There is a short application period for a hard money loan. You can usually get a lot within two weeks after you have applied. Besides, if you run into some problems, there is typically a way to negotiate with a lender.
• Easier Financing If you want to invest in multiple properties, it will be rather hard for you to get a conventional loan from a bank. To the contrary, hard money lenders are usually favorable to the multiple-property investors.

The Best Home Loan Options

Real Estate Hard Money Loans

Perfect for borrowers with a poor credit score and are unable to get a loan from a bank. If they have enough equity in their real property, then a hard money lender is interested in making a loan to such borrower.

Hard Money Loan Refinance

A hard money loan is an ideal solution for those who need to act quickly. If you want to refinance your home to a fixed rate, shorter mortgage term or cash-out refinance you can obtain a hard money loan for that purpose.

Fix and Flip Loans

This type of loan helps to purchase a property for renovation before turning it into a profit. Usually, investors buy, renovate, and sell a property within one year. Typically these loans are used to finance properties that are in poor condition. Fix and flip hard money loan is perfect both for experienced home flippers and for novices. Learn more.

Construction Loans

Banks are not willing to provide construction loans because this is too risky. Hard money lenders can take this risk if the borrower fits the lending requirements and if this transaction will be profitable to the lender.

Commercial Hard Money Loans

If you own a commercial property, you can obtain a hard money loan even if your credit is poor. Hard money lenders will look at the commercial value of your property, unlike banks that look at the credit score.