Application Requirements for Hard Money Loans

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There are many reasons why a hard money loan is considered a last resort. The borrower is required to use their own property as collateral rather than their credit. This loan type also tends to be more expensive than others. The closing cost and origination fees cost more and its interest rates also tend to be higher. Then there’s the down payment which usually falls between 30-40% of the overall loan. As a whole, a hard money loan requires a lot of risk to fall on the borrowers rather than the lenders. Benefits The borrower can still benefit, however. Getting approved for a hard money…
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3 Steps To Start Investing in Real Estate

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hard money loan

As the cost of living continues to rise, investing in real estate has become one of the best ways to build wealth. But, not everyone is familiar with how to purchase a property or is knowledgeable about a hard-money loan. Not only does it take time and money, but it also takes knowledge and skills. If you’re ready to start investing, these three steps will help you get started. Understand the Process: To get started, understand the process and what you need to learn. To invest in real estate with a hard money loan, there are three steps to take: 1. Choose an appropriate property…
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Picking the Right Project for a Hard Money Loan

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what is a hard money loan

Property ownership is a key part of the American dream, but making it happen can be more challenging than you anticipate. Having an investment property that you can buy cheaply, renovate and flip for a profit is another common dream. However, since one in three Americans struggles with poor credit, many ordinary people are not able to take advantage of the opportunities they see in front of them. Without approval for a loan or mortgage from a traditional bank, there is no way for them to take on a home remodeling project that can provide them with a nest egg they can save for the…
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Who Can Benefit from Hard Money Loans?

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what is a hard money loan

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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Can You Get a Hard Money Loan with Bad Credit?

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hard money loan

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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6 Questions to Ask Your Hard Money Lender

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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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Is a Private Money Lending the Right Option for You?

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private money loan

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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What is an Owner Occupied Loan and How Can it Benefit You?

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owner occupied loans

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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How Do Private Money Loans Work?

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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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3 Reasons to Get a Hard Money Loan for a Fix and Flip Project

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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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