Top 6 Reasons Why Use Residential Hard Money Loans?
Category : Hard Money Loans
Residential hard money loan is essentially a non-bankable loan on an investment single family home or duplex. This is one of the best financing methods for residential buyers to purchase homes in need of renovation and rehabilitation under terms that are more flexible than traditional, long-term mortgage loans. For a residential hard money loan, the underwriting decisions are based on the borrower’s hard assets. In this case, the lender uses your real estate as collateral for the transaction and you can find yourself with a loan in as short as 3 or 4 days depending on circumstances.
Residential private money loans can be used in a wide variety of buying situations, but here are the top 6 reasons why use residential hard money loans:
1). Buyers have damaged credit histories
2). Homes don’t meet the requirements of FHA lenders.
3). Buyers want to turn non-conventional properties into homes.
4). Traditional lenders are unable or unwilling to finance fix and flip loans.
5). Buyers have a mortgage on another residence.
6). Buyers need to finance purchases quickly.
Residential hard money loans are utilized by many different types of borrower’s cause of its flexibility. Many investors who opt for these types of loans do so because they find properties that they want to buy and don’t have time to wait for approvals through traditional financing institutions. Other investors opt for private financing because they want to buy properties that must be rehabbed or are viewed as high risk by lenders due to their location or use history. Individuals who have been through foreclosure or bankruptcy may also be able to use these types of loans to purchase residential property.
The Bottom Line
A residential hard money loan is a good alternative to traditional bank financing. This alternative financing is beneficial to the borrower in many circumstances. If you want to buy a distressed property or want to get back on track after a foreclosure, a private financing might be a good choice. With careful, advanced planning, private financing can provide for an excellent return on investment.
Magna Capital Group, Inc is a leading residential hard money lender; we understand that sometimes circumstances can make it difficult to qualify for a bank loan. Our residential hard money loans provide you with the fast funding and loan terms that you need to help you reach your real estate goals.
Visit our “Residential Loans” tab for various residential loan programs and investor requirements, or Contact Us Today at (323) 655-6888.