Posts Categorized: Credit Tips

If you are looking for alternatives to a traditional mortgage, you may be asking what is a hard money loan and how does it work? This kind of loan might be right for you if a conventional mortgage is too difficult to get or takes too long for your needs. What Is a Hard Money Loan? A hard money loan is an option for homeowners who need to get money quickly, using an asset to guarantee the loan. Unlike a mortgage, a hard money loan can be processed and paid out in a matter of days. The process of getting a hard money loan is…
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A hard money loan is a type of short-term loan taken out by real estate investors. The loan uses the property being purchased as collateral. A hard money loan can come with several benefits, such as speedy financing and a hassle-free application. If you’re an investor with a poor credit score, you might be wondering if you qualify for a hard money loan. Hard Money Loans Have A Less Stringent Approval Process Hard money lenders are more flexible than traditional mortgage lenders. Around 68 million Americans have poor credit, so this spells good news for borrowers within this population who are looking to take out…
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If you’re looking to invest in real estate, chances are you’re planning to take out a hard money loan to obtain the required funds. However, when shopping for the best hard money lender, it’s important to ask the right questions. For starters, a hard money loan is a loan that’s secured by the real estate you’re purchasing. Now that you have the basics, here are more questions to ask your hard money lender to ensure you’re getting a deal that best suits your needs. What’s the Interest Rate? Your interest is the largest factor that will affect the total cost of your loan. It’s important…
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Private money loans are a darling to budding real estate investors. Traditional mortgage options may be out-of-reach to most investors with low credit ratings. Additionally, the slow bureaucratic approval process at the bank may require you to present your tax filings, credit scores, appraisals, among other documents, before approving the loan. Sadly, you may lose out on the remarkable fix and flip deal that you were hoping to cash in on before the money ever hits your account. Hard money lending is often presented as a silver bullet to solving an investor’s cash crunch problems. But is taking out a private money loan the right…
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As the name suggests, an owner-occupied loan is given to a borrower who is expected to stay in the home for at least a year. Banks consider these loans to be less risky compared to investment properties. Because of the lesser risk they carry, owner-occupied loans come with lower interest rates. They also have lesser fees and penalties compared to second home mortgages or investment property loans. What are the Risks of Owner Occupied Loans? There are many advantages to owner occupied loans. However, these advantages are only beneficial if you stick to the agreed terms of the loan. For instance, with an owner-occupied loan,…
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There is no reason why you should feel ashamed if you have poor credit. This issue is more common than you might think, with roughly one-third of all Americans having less than desirable credit histories. Unfortunately, despite its prevalence, bad credit can still prevent you from getting where you want to be in life. Whether that means buying a house or buying a car, bad credit can and will be a nuisance. It will make you ineligible for a number of loans offered by financial institutions. So what are your alternatives at that point? In most cases, you’ll need to visit a private money lender….
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For fix and flip investors, getting access to quick financing is crucial to success. While a bank loan can be one way to finance a fix and flip project, bank loans often take ages to get, and the loan application process can be quite tedious. The real estate market is dynamic, and if you’re a fix and flip investor, you can’t afford to drag your feet and miss out on available properties. You need money fast. That’s where hard money loans come in.   Hard money loans don’t follow the stringent loan application processes most banks and traditional lenders use. Instead, hard money loans are…
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Are you between a rock and a hard place financially? Are you in dire need of a loan? Don’t know which kind of loan you should settle for? Well, you are in the right place. We will help you demystify between hard money loans and private money loans and find which best suits you. In the end, you will be able to settle on the loan provider that suits you best. A hard money loan is a traditional short-term mortgage that is collateralized by a hard asset while a private money loan is a money lent by a private organization or individual. Accessibility Private money…
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Borrowing money can help you achieve your goals sooner, but it’s not always easy to secure financing. That’s because there are many standards and requirements that you must meet to secure the funds. However, hard money loans can come to the rescue in such situations. What Are Hard Money Loans? Hard money loans are short-term loans that are mostly used by people who cannot get traditional mortgage loans. Private investors lend money to borrowers solely dependent on the property used as collateral. Hard money loans offer the following main benefits: Short Turnaround Time In terms of approval, hard money loans are fast and more reliable…
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A hard money loan is a type of loan that real estate investors can secure without putting their credit on the line. The hard money loan is funded by private sources that don’t necessarily follow the set of rules that banks and other traditional lenders use. The money is often used to secure a property to flip a home (meaning to purchase, fix up, and sell a property at a profit), which is how investors can grow their income. Here are some of the most commonly asked questions about this type of loan. What needs to take place before I can get a hard money…
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