While most loans require some type of proof that they can be repaid, this isn’t the case with hard money loans. Traditional lenders require a descent credit score, and sometimes they can still be painfully slow even when you’re approved.
If you’re looking to rehabilitate and sell properties or have another need for a hard money loan, our company is here to help. We provide fast funding times and flexible options to help increase your bottom line. Even if you’ve had difficulty obtaining real estate financing elsewhere, we’ll most likely be able to help. We have experience in all types of lending scenarios and many loan programs.
What is a Hard Money Loan and How Does it Help Real Estate Professionals?
A hard money loan provides investors with a fast way to obtain property, improve it, and sell it for a profit. Even if you have limited or no money for a down payment, we have bridge loans that will help you get the property you need, when you need it. Hard money loans are temporary loans that are suitable for investors who don’t wish to retain the property. Therefore, the loans aren’t practical for a primary occupant or someone who wishes to retain the property over the life of the loan.
Due to the temporary nature of hard money loans, the investor should have a clear vision of how they wish to improve the property and have a solid exit plan. Since these loans are made on a convenience basis, the interest rates are typically greater than a conventional mortgage with a different repayment structure. Interest-only payments, adjustable rates, and balloon payment loans are common loan types. To avoid the pitfalls of these types of temporary loans, the property should be listed for sale immediately upon completion and the loan repaid at settlement. Typically, hard money loans are satisfied within the same year that they’re originated.
Hard money loans focus more on the collateral and its ability to produce a profit rather than the borrower’s financial history. This means that credit blemishes and limited assets aren’t necessarily deterrents as they would be with a conventional loan. You’ll be able to take advantage of more opportunities feeling confident that you have us on your side.
What Information Do I Need to Apply for a Hard Money Loan?
When you apply for a hard money loan, you should have a property selected. It’s helpful to gather as much documentation about the property as possible. This could include appraisals, home inspection reports, tax bills and liens, and anything else that relates to the property’s history. Our company will order an updated appraisal and other necessary documents to proceed with the transaction. Although personal information isn’t heavily weighted in the underwriting process, it’s a good idea to ensure that your information is accurate, complete, and presentable. Any major financial events that are derogatory should have a reasonable explanation prepared in writing.
You should also be able to provide estimates of the work to be completed as well as a timeline. The after-repair value of the home should reflect real-world data and be a realistic amount.
How Do I Apply for a Hard Money Loan?
Applying for a hard money loan is fast and simple. Our online application asks for simple information that will help us get an idea of what you’re requesting. You’re also able to contact us by telephone if you’d prefer. Our loan representative will review the information and contact you with the next steps to continue with the loan. They’ll also advise you of the documents that’ll be required and the loan details. If a hard money loan isn’t appropriate for your situation, they’ll provide alternatives if possible. After this point, you’ll be scheduled for settlement and receive the funds to complete your project. It’s really that easy! You’ll quickly understand why so many real estate investors trust us as their go-to lender. Get in touch with us and see exactly what we can do for you, today!