Hard Money Loans
Hard money loans are loans that are based solely on the equity in your home. There is no lengthy review of an individual's credit profile, work history, income documents, other traditional loan guidelines. While hard money loans are quick and easy to obtain, they carry higher rates than traditional financing due to the inherent risk the lender assumes when not verifying the borrower's history or ability to repay the loan. A hard money loan should be a last resort for most home buyers since the rates are the least favorable of all loan programs. A hard money loan however can be used to a client's benefit for a huge variety of situations. We will look at some of the more popular reasons that buyers typically use a hard money loan for. In all of these scenarios some equity in the home is required.
Hard Money Loan Scenarios
- HOMEOWNERS WITH EXTREMELY BAD CREDIT IN NEED OF DEBT CONSOLIDATION
- EXTREMELY BAD CREDIT FORECLOSURE BAILOUT
- INVESTORS LOOKING TO BUY PROPERTIES QUICKLY WITH LITTLE DOCUMENTATION
- NEED FAST CASH FOR SOME REASON AND HAVE EQUITY IN THE HOME BUT VERY BAD CREDIT
- LOANS ARE BASED ON CURRENT APPRAISED VALUE
- NO DOC LOANS OR STATED INCOME LOANS
- CLOSING HAPPENS IN HALF THE TIME OF TRADITIONAL FINANCING
- BUYER RARELY PAYS FOR THE COST OF APPRAISAL
- EXTRA INCENTIVES TO CLIENTS THAT DO REPEAT BUSINESS
- HARD MONEY LOANS ARE GOVERNMENT REGULATED AND POINTS/FEES CANNOT EXCEED STATE GUIDELINES
- LOWEST POINTS AND FEES AVAILABLE