Common reasons why people go for hard money loan

Common reasons why people go for hard money loan

Hard money loan is a specific type of loan that is provided to the customers who own a home; the loan is based on equity. There are many companies that provide hard money loans. This type of equity based loans has become very popular; people hardly have time in hand these days. Hence, hard money loan is the only solution when you are in dire need of money.

While choosing for the hard money lender, your credit score is not considered. People with low credit score can also qualify for this type of loan. Such loans are secured by property; the quick sale value of the property to be precise. It means, if the borrower defaults and the property is sold to pay off the debt, then the hard money lender will be the first person to receive their share.

Here is a list of reasons why people go for hard money loan:

• The hard money lenders are better aware about the commercial world and various other aspects of personal finance.
• In most cases the lender offer approval within very few days of initial contact and extend the money within few hours after the loan approval
• The complete loan process is simple and hassle free. You are neither required to submit much paper work not to accumulate huge documentation.
• Credit score of the borrower is not a matter of importance. The lender will not check income, savings account statement or any other financial records – no question is a great feature of hard money lending.