Poor credit can be hard to deal with, but it shouldn’t stop you from living your life. The good news is that it’s still possible to get a private loan with poor credit. At ARC Private Lending, we work hard so you can get funding. However, even if you know where to get funding, you may still have some important questions. With that in mind, here are some of the most frequently asked questions we receive about private loans and the answers you need to know.

What Is a Hard Money Loan?

A hard money loan is a loan from a private lender rather than a bank or other traditional financial institution. It’s secured by real estate, such as a house or other property. The loan itself is short-term with higher interest rates than typical long-term loans. Private lenders provide hard money loans to borrowers with bad or poor credit who need cash quickly.

Why Get a Hard Money Loan?

For many people with poor credit, applying to get funding for a hard money loan can be their best option for getting the funding they need. Even though the interest rates are higher than a traditional bank loan, there is usually less paperwork and faster approval times. This means you can get the cash you need as soon as possible.

Who Is Eligible for a Hard Money Loan?

Anyone with collateral can get funding for a hard money loan, even after a bankruptcy or foreclosure. The only requirement is that you have an asset, such as a house or car, to be collateral for the loan. One-third of Americans have poor credit, according to Forbes, so if you are among them, know that there is still a way to get the funding you need.

Does Income Matter?

Yes, income matters because it plays into how much of a risk you are. A hard money lender is a business, and they will look at your income to get an idea of how likely you are to be able to pay back the loan. So your debt-to-income ratio should be in an acceptable range for the lender. Expect to show your tax returns for approval.

Those with poor credit history can get funding for a hard money loan with Arc Private Lending. Our experienced private-lender team will help you get the cash you need quickly and with minimal paperwork. If you have a question that wasn’t answered here, don’t hesitate to reach out to us today!