subject: The Monetary Assistance Of A Hard Money Lender [print this page] Finding hard money lenders is somewhat simpler in the South Carolina region compared to other regions. One of the main factors behind this is that these kinds of loan providers typically try to work well known areas and in an area like South Carolina where there is plenty of real estate for consideration. So now loan providers will also gain more customers as opposed to the relatively sparsely filled locations. This naturally creates a greater 'pull' for private customers to come and do business here.
Hard money lenders are private individuals and companies who will provide you a loan to purchase a house - for instance, when some other standard financial organizations will not. This can be because of a multitude of reasons which could range between adverse credit scores to the need to purchase the home in a remote area which the traditional firms are not satisfied.
Although hard money lenders typically give a loan for the acquisition of a home or a property, numerous firms are now coming up with methods which they could wonderfully develop a loan so individuals can buy commercial land or building also.
Often the monthly interest is greater, about 12% - 18% and the loan is a first loan in most situations with the balloon payment to be paid after 12 to 24 months. These financing options are known by their huge rate and somewhat lesser loan to value rate. Besides the interest rate, there's a fee which could increase to 8% of the amount borrowed. The hard money lenders want to hold their loans secure always and so they have to make certain you have sufficient equity on your property in the event of default they could sell and get back their loan.
All in all, even at the likelihood of stating the obvious, hard money lenders should be your last measure but they are not loan sharks and can be utilized to get out of a tricky condition if you check your needs and your financial position effectively.
