Get Rid of your Financing Problems through Hard Money Lending
Category : Buying & Selling Tips
Qualifying for a bank loan appears to be a plausible solution, it wouldn’t exactly do you any good since it usually takes a long time for a bank or traditional lending company to assess a loan application. And with banks stepping up their lending standards, qualifying for a traditional loan is more difficult than before. Therefore, your best bet is to try hard money lending.
Succeeding for a hard money loan is the best solution that you can think of while facing financial crises. Because lenders of hard money use a lending criteria that is remarkably different from the ones utilized by banks, mortgage companies, and credit unions, a borrower can enjoy several liberties that he doesn’t normally enjoy when qualifying for a bank loan.
Another advantage of choosing a hard money loan is that a borrower can secure funding regardless of his credit rating. Hard money loans are primarily asset-based and hard money lenders reject or approve a loan application depending on the after repair value of the property for which the loan is being made. This means that as long as you’re borrowing funds for a house that has a high ARV, you can get the money you need even if you have a poor credit score.
And what’s best about hard money loans is that you can quickly get the funds you want. With this type of financing, extensive credit checks are not necessary. So even if you were given a week to close a deal, you can fulfill your promises to a seller by obtaining a hard money loan.