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Is Credit Important When Getting a Hard Money Loan?

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You might think that because hard money loans have traditionally been equity based, no one should or would care about credit. While this is true sometimes, there are instances where credit does play a part in underwriting a hard money loan. For example, if there are two borrowers applying for similar loans and one of them has good credit while the other has bad credit, it is not uncommon for the one with good credit to get a slightly better interest rate and to get approved more quickly. Really, it depends on the investor who is going to provide the money for the loan. Some…
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Hard Money Uses

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private loans interest rates

While most people who have anything to do with real estate have heard of hard money, there are still many who can’t imagine a use for it. Who can blame them? The rates and fees are higher than banks charge and they require a bigger down payment. So, why would anyone use it? Actually, there are many reasons. Maybe the property is in poor condition or has problems with permits. It could be that the borrower has bad credit or can’t prove income to the satisfaction of the bank. Regardless of the reason one would look for a hard money loan, there is a very…
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