Hard money loans are often easier to get as compared to other loans
. It is an asset based credit and this type of loan is common among real estate investors. This type of loan does not at all require a good or bad credit record. Though this type of loans is best for those seeking emergency funding sources but they are not credit based lenders.
Borrowers usually tend to get benefited from this type of loans. The terms and conditions set for this type of loan are however very different from the local banks. Though this type of loan is not for everyone but it is a viable solution for those who find it difficult to find a traditional Real Estate Loan.
Hard money loans differ from lender to lender. The lenders are generally private lenders and they their own set of guidelines which may vastly differ form one another. Following are some of the terms that may be viable when applying for this type of loan:
Application fee, due diligence fee and commitment fee may be charged The charges may vary from lender to lender The lenders may fund up to 50% loan depending on the surety you give them There are also some lenders who fund interest, origination fees and rehab money.
While selecting a particular hard money lender, it is important to understand the benefits of using these options to get them out of the crisis they are in. Reasons To Consider Why Hard money loans. Following are some of the reasons which will throw ample light on why hard money loans should be considered as one of the best options:
These type of loans are sanctioned within 5-14 working days provided that you have submitted documents. Though it requires documentation but unlike the traditional documentation, the requirements are extremely low. Your bad credit history has nothing to do with hard money lenders. The payback methods are very flexible. The financing, interest reserve, cash schedules, financing carry etc are simply awesome.
You do not require and personal guarantees to apply for the loan. Nationality of an individual is not an issue with Hard Money lenders. While applying for this loan, beware of the predatory lenders. There are a number of such lenders lurking in the market. Yet it might give you solace and comfort knowing the fact that there are big bucks available to you in the form of Hard money loans.