If for some reason, you can’t take out a loan with a traditional mortgage lender, a hard money loan could be right for you. Simply put, with a hard money loan, you use the property you’re about to purchase as collateral for the loan. Here are the top reasons why a hard money loan could be the best option for you.

Flexible Requirements

Traditional mortgage lenders tend to have stricter eligibility requirements that make it harder to qualify for a loan. When you apply for a loan at the bank, the application process might involve a lot of paperwork. In addition, you might be turned down if you don’t meet the minimum credit score requirements. On the other hand, hard money lenders are more interested in the value of the collateral you have and whether you have the minimum equity stake in the property.

Quick Approval

When you apply for a loan with a traditional lender, the approval process can take longer than usual. The good news is that you can usually get your application approved fast as long as you have gathered all the required paperwork beforehand. This gives you a better chance of closing your deal quickly and successfully.

No Prepayment Penalties

Like with any other loan paying off a hard money loan means you have to pay interest on top. According to research, interest rates for hard money loans typically range between 8 to 12 %. The good news is you can reduce interest costs by paying off your loan at an earlier date. Hard money loan lenders are less likely to charge prepayment penalties, meaning you can pay off your loan faster without incurring an extra charge.

Customized Payment Plan

Your financial situation is unique, and most hard money lenders understand that. This is why it’s possible to negotiate a payment plan that suits your budget. That way, it’s easier to stick to your monthly payments and avoid defaulting on your loan. A customized payment plan allows you to have more disposable income even as you pay off your loan. You can also choose to pay off your loan earlier.

As you can see, hard money loans come with many benefits, which you can take advantage of by getting in touch with us. You can buy your home the easy way with the right hard money loan.