Some important issues of hard money loan

Do you know that why money is important for everyone so much? Money is very important because it is ensuring to buying all necessary product which we need daily. For earning money, the people are doing many things. And for this reason many people from us are doing private business. Business is indicating to obtain success economically in your life. But the time of doing business, one business man needs to face with loan. Hard money loan is the best way or place to make fund for your business. It is a private money loan. It is not obeying government rules and guidelines. There are many issue of hard money loan which people must be known. Now, I will tell you about these issues.

Property issue

Due to it is a property base loan, firstly you need to know about the property issue. One person need to submit his property information to getting hard money loan. An applicant can get up 70%-80% of after repair value (ARV) of his property. Property location is effecting on the interest figure of your loan. Property condition can help you mostly get maximum value as loan. So, be sure what your property condition is.

Credit issue

This loan can be obtained without any credit. Most of the lenders are requiring little credit score. And credit issue is not affecting the hard money loan. Anybody can get loan with little credit or without credit information. Credit score is not a big fact in hard money loan.

Personal income issue

If you will take loan from bank then you must need to verify your income information. But this is totally different in hard money loan. Hard money lenders are not asking for verified income information to approving any loan application. So, no one needs to worry if he has no verified income information.

Short term

This is a short term loan. There is no way to take loan for more than 3 years. If an applicant wants to take loan for more than 3 years then he will need to pay more than 20% interest against a hard money loan. This loan is closing in 1 to 3 years.

Interest rate

Hard money loan’s interest rate is too much high. One person need to pay minimum 8% interest against a hard money loan. A hard money loan borrower needs to pay up to 15% interest against a hard money loan. But this is very important to know everyone that the interest rate of hard money loan is calculating by the risk volume of the proposed project. Sometime the interest rate of hard money loan may increase up to 26% also.

Fees of hard money loan

One man need to pay minimum 2% cost to getting hard money loan. One man needs to pay up to 10% cost to getting hard money loan. This cost may reduce if your property condition is good. So, you should take a best care of your property. To reduce fee, you have to use a good condition property and the property which are in the nearest area or location.
Processing time of hard money loan

The processing time of hard money loan is very short. A hard money loan is making within 1 to 3 weeks. Hard money lenders are also able to make any fund within 7 business days also. This is fact which is making the difference between banks and hard money lender.

After hearing all of these issues, if you are want to take a hard money loan then you will need to find out real hard money lenders. Lending Universe Inc. is helping people to find out real and qualified hard money lenders in certain area. Here are over 10000 verified hard money lenders in their largest database to lend you money. Here, you also can found many registered appraisers to evaluate their customer’s property value accurately. Here is a short and simple loan application form to apply for a hard money loan. And after filling up this loan application form, your application information will forwarded to their verified lenders. And you will get many offers and bids from the lenders who are wanted to lend you money. You will get a free tool for processing your loan process. There are also many registered loan brokers and real estate agents.