Hard Money Loans – The Best Financing Options for Investors and Borrowers with Bad Credit
Category : Hard Money Loans , Uncategorized
By coincidence, if you have bad credit or low credit score, there is no chance to get traditional home loans for you. In this situation, only hard money loans can help you to purchase a home. A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real estate property. Hard money loans do have an important role in the real estate market. When traditional financing options are not available, utilizing a short-term hard money loan can help achieve a borrower’s end goal. This type of loan is often used by real estate investors to quickly acquire the capital needed to purchase, refinance or renovate a property. Hard money loan is also intended for interim use while borrowers rebuild or establish a credit history. Sometimes, Investors use this type of financing to buy properties that are not in marketable condition because this type of realty does not qualify for conventional financing through banks. The advantage of having a hard money loan is you are assured that the lenders have funds promptly available for you. That means you do not have to wait for approvals from investors and this makes the process fast compared to the traditional lending. Hard money is also unique for its relatively relaxed underwriting standards, quick turnarounds, and for considering the value and equity of a property rather than the creditworthiness of the borrower in the underwriting process. So, you don’t need to have perfect credit to get a hard money loan, but you do need to have a good exit strategy and you should have the ability to bring some of your own money to finance your project. Another advantage of a hard money loan is faster to approve and are usually approved within a few days. You usually have the ability to borrow up to 70% of the property’s value. Conclusion: A hard money loan is the best option for the real estate investor because there is more weight placed on what you offer as “collateral” than on your credit score, checking account balance or other income requirements that more traditional lending institutions use to determine denial or approval of your loans. The advantages of easy access, convenient requirements, and rapid processing allow you to make your dreams of real estate a reality. Magna Capital Group is a reputable hard money lender in California. We understand the complexity and details of all kinds projects. We are fast, creative and reliable consultants with the experience and lending sources to keep your project momentum moving forward. We offer hard money loan for all kinds of residential and commercial projects. We provide the best loan programs to meet your financial goals. If you feel that a hard money loan is right for you or if you have any additional questions, Call (323) 655- 6888 or Email at info@magnaloans.com.