get a hard money loan

What comes to your mind when you want to get a hard money loan? Hard money loans are a form of lending. They are generally unsecured, meaning the borrower does not need to use any asset as collateral. There is no recourse to the lender in case of a default or inability to repay the loan. Hence, individuals often use hard money loans when they have trouble qualifying for standard financing options due to credit scores or other factors unrelated to their ability to repay debt. There are several benefits to getting a hard money loan. Some of these may include:

1. Low-Interest Rates

The interest rates with hard money loans are usually much lower than other forms of financing. The only requirements for the loan are that the borrower has enough equity in the real estate that they plan to purchase and can afford the monthly payments. This means that a borrower will not have to pay as much interest over time, putting more disposable income into their pocket.

Despite this, individuals should note that interest rates can shoot if they incorporate payment defaults. For hard money loans, the interest rate ranges from 12 to 21%, but it could escalate to 25 to 29% if the borrower defaults on the loan.

2. No Credit Check or Collateral

No credit check is generally involved when you want to get a hard money loan. There may be some additional paperwork that the borrower must complete, but it is not required to get the funds for their home purchase. In addition, individuals cannot make mortgage payments on a hard money loan. This means there is no risk of losing their home if they cannot make loan payments.

3. Quick Processing Time

Individuals should understand this vital aspect when they want to get a hard money loan. Although the interest rates may be lower than other mortgage lendings, lenders may also reduce the time to approve a hard money loan. There is no requirement for an appraisal or credit check, which can often add days and weeks to signing a loan.

4. Less Formal

Hard money lenders do not tend to be as formal or professional as those who work in the mortgage industry. This can make it easier for a borrower to get a loan from hard money lenders. And may make them more willing to lend to borrowers whose credit score or income is not high enough to receive financing from traditional sources.

In conclusion, when you want a hard money loan, ensure you talk to a lender with experience in this area. It will allow you to get the most out of all the benefits of hard money loans.

Do you want to get a hard money loan for your home? If so, kindly contact us today. Our case managers will provide you with all the information you need to decide on the right loan for your situation. Moreover, we are dedicated to ensuring each client receives a high-quality loan that meets their needs as much as possible.

Please do not hesitate to see us or contact us via email if you have any additional questions.