What is an asset based loan? An asset-based business line…
If you’re a real estate investor who rehabilitates properties for resale, we have good news for you! Our company now offers hard money loans to provide you with funding within days rather than weeks or months. Our flexible loan programs can accommodate nearly any type of investor. Even if you’ve been turned down by local banks or finance companies, we’ll probably be able to help. You’ll have the opportunity to take advantage of great deals and make more money.
What is a Hard Money Loan and How Do they Work?
Hard money loans are designed for investors who are looking for a bridge loan to make an immediate property purchase or to rehabilitate properties for resale. The loans are structured differently than their traditional loan counterparts. With a hard money loan, the term tends to be much shorter. The typical term is one year or less and the maximum term is usually no longer than five years. Due to the convenience of these loan products the interest rates tend to be higher and the payments typically are covering only interest. Other common loan types include balloon repayment and adjustable rate loans. Although the terms may not be as appealing, the benefits far outweigh the setbacks.
Hard money loans in Moreno Valley also focus on the property rather than on the borrower. This means that less than perfect credit is acceptable. Since many investors have assets and are self-employed, these factors are also considered. The only requirement is that the project must have a strong likelihood of making a profit. These concessions afford many investors a new opportunity to take on more projects and increase their income.
What Differentiates Hard Money Loans from Traditional Loans?
A traditional mortgage loan is typically government backed by one of many agencies. The underwriting guidelines tend to be much more rigid and focus heavily on the borrower’s ability to repay the loan. Many times, unless the borrower can provide a significant down-payment, they’ll be required to maintain mortgage insurance. This can add a significant amount of money to the monthly mortgage payment. These loans also take a significant amount of time to approve if there’s any questionable items. Heavy documentation requirements for income, assets, employment history, and more are required. This tends to dissuade borrowers that fall outside of the traditional lending guidelines.
A hard money loan is a non-conventional form of financing. While these loans are required to follow some lending guidelines, much greater flexibility is afforded in the approval process. Overall, hard money loans are a great solution to those who need to conduct business quickly and appreciate the convenience factor.
What’s Required for a Hard Money Loan in Moreno Valley, California?
To pre-qualify for a hard money loan, a specific property must be selected. Any information that’s able to support the after-repair value of the home is also taken into consideration. If a recent appraisal has been conducted, it should be submitted at the time of application. An updated appraisal will be ordered to ensure the resale value is realistic for the home when compared with similar home sales in the area. Business and personal financial records may be requested and should be made available for inspection.
How Do I Apply for a Hard Money Loan in Moreno Valley, California?
To apply for a hard money loan in Moreno Valley, California, you’ll want to utilize our online application. It takes only a few moments to complete. You’ll then be contacted by one of our courteous and professional loan representatives. They’ll discuss your options and explain how to proceed with the application. Get in touch with us online or by phone for your hard money loan in Moreno Valley, California, today!