HARD MONEY BASIC

INFORMATIONLooking for a different ways to get loan. Know

more about hard money loan today…

WHAT IS HARD MONEY?Most of the loans is need to proof that borrower have the ability to repay the amount of loan. Conventional lenders are mostly depending on credit and income to make a loan. Conventional lenders are assuring about the ability of paying returns of the amount of loan through his property value, credit score and income information mostly. If a borrower has accurate information to proof him to repay the amount of loan then he can easily get this type of loan. But if a borrower cannot proof himself for conventional loans then hard money will be the only and last way to get loan. Hard money loan is a kind of loan which is using borrower’s property to make a loan. Hard money lenders are giving loan secured by your property and thus they are being sure that you can repay the money by selling your property if you cannot repay. Thus they are not depending on borrower’s financial condition. If any borrowers will not able to pay the amount of loan then hard money lenders are foreclosed the property and collect their money. Normally it is a short term loan. This loan is lasting up to 3 years. You cannot make this longer because hard money interest rate and point rates are higher than conventional loans. If you want to take loan more than 3 years then your interest rate and points may increase up 1% or more.

WHY HARD MONEY IS SO POPULAR?There is a question that if hard money loan is so expensive way but why it is so much popular. Hard money lenders are mostly offering to the people to get loan who have been disqualified from conventional way. Due to there are many people who are disqualifying from banks for bank loans, they are mostly using hard money loan as their last resort. Hard money loans are mostly popular for residential and commercial loan. Hard money loans are only depending on borrower’s property value. So, it is easy to get loan for those people who have private property which he can use as collateral. You do not need to verify your credit and income information. This loan can be achieved quicker than conventional loans. And for this reason this loan can be obtained through less documentation. One most important thing is that hard money loan is also popular for its speed funding opportunity. Anybody can get loan from hard money lenders within 2/3 weeks. Some hard money lenders are also able to provide loan within 7 business days also. Normally banks need more than 1 month to make a commercial loan approve.

HOW TO QUALIFY FOR HARD

MONEY LOAN?

You do not need to achieve much

credit to obtain a hard money loan.

Your income information is not so

important to obtain hard money loan

also. Hard money loan can be

obtained without verifying your

income and credit information. You

can get hard money loan by

verifying your property information

only. ARV that means after repair

values of a property is making the

amount of hard money loan. One

can get up to 70-80% ARV of his

property as loan. A hard money loan

can be approved within short time.