There are times when you need a loan fast. This could be due to business or personal reasons where you can’t wait for the lengthy procedure and time to acquire a loan from the bank. If you are in a rush to get finances for real estate, you can quickly get a hard money loan. Here are the top five benefits hard money loans offer.

Fast Approval

When dealing with hard money, be sure that you can get it as soon as the lender confirms that the property on collateral is legitimately yours. Suppose you are involved in a real estate business, and you need money within the shortest possible time. You can buy the property as soon as possible before another potential buyer comes into the picture. In some cases, hard money loans can be approved within 24 hours.

Flexibility In Payments

You and the private lender can develop a comfortable payment plan for you. As long as they have tangible collateral, the lenders feel safe and can let you pay at your pace. With a mortgage, you have to agree to a minimum deposit and a constant payment plan that you have to agree to.

Fewer Requirements Needed

Bank loans will require you to provide a list of requirements such as profit and loss statements, balance sheets, and other financial prognostications. With a hard money lender, you must ensure that you own a high-value property that can cost at least 20% of the amount you need.

Zero Prepayment Penalties

Do you know that you can get fined if you pay your bank loan too early? Prepaid loans have penalties making you have a loan that you could have finished earlier. However, when you choose hard money loans, you can agree with your lender on possible extra payments you will possibly be expecting. You will pay off your loan fast and with no additional charge.

You Don’t Need a High Credit Score

You are securing part or the rest of your loan repayment with a highly valued property. Your lender will not be interested in your credit score as they have collateral. It’s you to ensure that you pay back the money to get back your money.

Hard money loans will save you the time it takes for bank approvals. You can also come up with an agreement with your lender on the most appropriate payment plan and finish paying your loan sooner with no expected penalty. If you are interested in learning more about the great benefits of hard money loans, contact us today!