Money can actually be pretty tricky. It’s not quite as simple as taking out a loan when you need one in order to pay for a house, a car or even some bills that have managed to pile up on you. There are lots of different types of loans out there and many different types of loan institutions that can provide you with money when you need it. So why should you choose a hard money lender to get the funds you need? Learn a little more about hard money loans and hard money lending, and learn why this might be able to help you when you’re in a difficult situation with money.
What Is a Hard Money Lender?
Mortgage companies specialize in a specific type of loan: home mortgages. Loans can be so complicated and so highly in-demand that some businesses specialize in just one or two types of loans. A hard money lender has chosen to specialize in hard money loans, which is another specific type of loan. Hard money lenders are almost always private investors who issue private money loans or companies that specialize in hard money loans to power their business.
A hard money loan is an asset-based loan where the person borrowing the money uses a property to secure the loan. This can be any type of property, but typically people use their homes as the basis for securing a hard money loan.
Hard money loans have loan-to-value ratios around 60% to 70%, while banks offer much higher loan-to-value ratios. So why would someone choose this type of loan? You may already know that it’s not so easy to get a loan from a bank. People with poor credit, bad credit, or no credit won’t eve be able to get a loan without a co-signer, and it’s even harder to get a co=signer than it is to get a loan! When you haven’t got great credit and you haven’t got a lot of people willing and able to help you out of a jam, a hard money lender can help. The name pretty much says it all: hard money loans are for when times are hard.
How to Find a Private Money Lender
You know where to go when you want to get a bank loan, just like how you know where to go to shop for a loaf of bread. But do you know how to find a hard money lender? Probably not. Most people don’t even know about this type of loan, let alone how to find a professional that provides hard money loans. Finding the right private money lender to help you obtain a loan actually isn’t a difficult process. Once you know how to do it, you won’t forget it.
To find a hard money lender, look for private money lenders online or lenders who provide specialty loans. You will no doubt find many types of businesses by conducting this search online. Narrow your results by searching specifically for companies and individuals who provide hard money loans or name themselves as hard money lenders. Look for businesses in your local area, or as close to you as possible, to make it easier on yourself if you have to come in for an in-person meeting or to drop off payments. Chances are, you can complete your application and make loa payments online, but it pays to be cautious and look for lenders in your local area whenever possible.
Getting a hard money loan is as easy as filling out the application. The application process will likely require you to gather up paperwork such as tax returns and the deed on the property you’re going to use as the basis for your hard money loan. The hard money lender will walk you through the process so you can complete all the steps to applying for this type of loan You will either be approved or denied and then, hopefully, you’ll get the money you need to get through this rough patch.