Reasons Why You Should Consider Hard Money Loans

Reasons Why You Should Consider Hard Money Loans

Hard money loans are the most easy & hassle free loan today. It is mostly referred to real estate investors as asset based lending. The collateral on the loan becomes the real estate. They are far from conventional loans, since the underwriting guidelines that private money go by are far different from your local banks. Below are some of the few reasons why one should consider a hard money loans:

• Fast process – Hard money loans are closed in 5 – 14 days if compare to banks, once the complete documentation is done.
• Minimum Documentation – Less documentation as compare to tradition lenders. Loan amount is based on the value of the property and not depend on the credit rating.
• Credit Rating – Having a low credit score is not an issue, people with bankruptcy and credit scores under 490-600 do not have any problem, whereas banks always require a great credit history.
• Flexibility – Hard money loan are more flexible, as there are various options present to match up with your needs.
• Higher Risk Deals – Churches, non-profit are not a problem with hard money lenders, but are with traditional lenders who are concerned if they have to foreclose on a church loan, and the bad publicity they will receive.
• No personal guarantee require – Hard money Loans are based on the value of the property so no personal guarantee is required.