Great Facts on Hard Money Lending
Category : Buying & Selling Tips
A. Hard money loan is a loan in which the borrower gets funds based on the value of a property as opposed to the traditional lending criteria that banks look for such as credit scores, tax returns, and income statements.
B. Hard-money loans are bridge loans, which are used for real estate acquisitions, refinancing, foreclosures and investors who need to close quickly.
C. Because these loans are based on the property’s equity, hard money lenders will examine the property to determine if the property value justifies their loan to you.
D. Having problems finding traditional financing in time to rehab your investment property? A hard money loan may be your solution if your credit is less than perfect. Yes, the interest rates are little higher, but you have the ability to act quickly and rehab your investment property so you can flip and get your profit. When you are obtaining a hard money loan, use caution and know what you are getting into. Check references. As in any business, there are unethical lenders out there so just be thorough and check the lender out.