Hard money is a way of alternative funding. When a man
need loan quickly and when conventional loan cannot be achieved, hard money
will be the alternative option to make money. It is the last section of get
funding. Here is no strict issue to disqualifying any loan application. Anybody
can easily apply and get hard money loan.
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.
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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.
To get a commercial and residential loan, hard money loan,
fix and flip loans then contact with Lending Universe Inc. It is a financial servicing company.
They are also serving for property buying & selling. Here are over 10000
verified hard money lenders to lend you money. Here are many registered
appraisers who are evaluating property value accurately. They will help you to
get maximum amount of loan. Here are also many registered and verified loan
brokers and real estate agents. Here anybody can apply for a loan through a
simple and short loan application form. After filling up your loan application
form you will get a loan control center tool to controlling your loan process.
And you can see the offers or bids which will be provided through many lenders.
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