Hard Money Lender
Providing The Best Hard Money Loans
What is a hard money loan?
Hard money lending is very different from traditional mortgage lending. Hard money loans can be defined as an asset-based loan which is given on the value of an asset, specifically property value. Individual or investors lend hard money loans on the property which is used as collateral. On the other hand, hard money business loans are given on the business’s commercial real estate which is used as collateral for the loan.
What kind of approach hard money lenders adopt?
In most of the cases, the loan needs a valid proof of your ability to repay a loan or any kind of business loan. Most of the time, lenders are only interested in your firm history of borrowing responsibly, income availability to repay loans and credit score. But hard money lender is less concerned about the ability to repay. These kinds of lenders lend money based on collateral to secure the loan. They can get their money back by taking and selling the collateral since the value of the collateral is more beneficial than the financial position.
What kind of property can be used for Hard Money Loans?
If someone is in urgent need for hard money loans, he/she can use any type of property such as land, single-family residential, multi-family residential, industrial and commercial. However, the majority of hard money lenders lend specific niche of loan. Not every lender is comfortable with all types of property for which they are willing to lend. They have certain limitations simply because of lack of experience in that particular area. Therefore, the borrower needs to initiate and ask them upfront that which type of loans they are able or willing to do.
Uses of hard money –
Hard money loans are expensive, and everyone should work according to a full proof plan to earn profits. Despite being expensive, hard money has a variety of uses for many borrowers. When specific borrowers can’t get traditional funding they proceed towards hard money because of below-mentioned significance.
- Take less time – Borrowers get their hard money loan in less time than traditional loans. The process of loan application moves quickly when you have a good relationship with lenders.
- Easy agreement policies – In hard money loan, lenders don’t consider systemized underwriting process; moreover, they don’t follow strict policies and are willing to talk.
- Prompt Approval – Hard money lenders only focus on collateral. You get the same loan amount against the property you pledged as collateral. Most of the time money lenders keep LTV (Loan-To-Value) ratios low and your assets must qualify for hard money.
Peach funding capital is trying to provide you with all feasible information about hard money loans and credit repair service. We give hard money loans and credit repair service swiftly, so that, you can do your project on time.