What You Need to Know About Hard Money Loans
Are They Right for You?
These types of loans are not regulated by the Federal Deposit Insurance Corporation (FDIC). Whether you want a quick close on your loan, unable to meet bank requirements, or are planning to buy the deal of a lifetime, we are here to provide the financing needed to meet your specific goal.
Closings typically occur two days after the title work is completed. Our loan approval process starts with an initial phone or email conversation. We will then schedule a site visit to inspect the property and meet the borrower.
Banks and institutional lenders have stringent requirements. Often, they take a long time to process and approve a loan and do not consider that you have a ton of equity. They most likely will not lend to you if you have a poor credit history. When you need to move fast to strike a deal or borrow equity out of your land, a hard money loan is the best option you have.
How Do Hard Money Loans Work?
Borrowers may receive a short-term loan with a high-interest rate. The loan typically lasts two years with a minimum term of one year. Our loans are asset-based, which means that borrowers can have credit issues and still obtain a loan based on property evaluations. We also serve clients who may be going into or coming out of bankruptcy.
Is Hard Money Similar to Bridge Lending?
There is very little difference between a hard money loan and a bridge loan. A hard money loan is based on assets. Both loans can also be used to purchase or borrow against investment or commercial property. In most cases, the buyer is still unable to get traditional financing due to this transition.
Who Loans Hard Money?
Hard money lenders are typically private agencies or entities that strictly handle this type of financing. These experienced lenders are not that common, so you should learn more about direct lenders from the Scotsman Guide.
Many brokers present themselves as lenders when they are not. As a solution, our established broker presence provides our clients from various states with leads from around the world. We also make sure that all our brokers are always protected.