Why You Might Need a Hard Money Lender
Maybe you’ve been denied a loan by a bank or other traditional lender. Hard money lenders are typically more flexible than other options and can often provide loans even when other options have turned you down. Here’s why.
There’s Less Downpayment
A hard money lender only needs a small down payment in order to fund their loan, which could range from 3% to 20%. This means that the borrower will need to have anywhere from $1,000 to $50,000 available when applying for this type of loan.
The amount to be borrowed will vary depending on what type of property you are interested in and how much equity you have built up already. You can be loaned up to 70% of the value of your purchase.
Collateral Is Not Needed
A hard money loan is a type of mortgage that does not require the borrower to provide any collateral, as it is typically provided with no strings attached.
These loans are generally given for lower rates than traditional mortgages and can be used for a variety of purposes, including home repairs or flipping properties.
You Can Use It for Many Things
One of the best things about a hard money loan is that it can be used for a variety of purposes. This means that you are not limited to just using it for home repairs or flipping properties.
You can also use your hard money loan to purchase a new vehicle, pay for college tuition, or even take a vacation. It gives you more freedom than conventional lenders.
It’s a Quick Transaction
Because there’s collateral is not required, and there’s less downpayment, the entire process can often be completed in just a few days, as opposed to the weeks or months it can take to get a traditional loan approved.
This is because hard money lenders are not as concerned with your credit score or your ability to repay the loan. They are more interested in the property that you are buying or refinancing.
Benefits Outweigh the Costs
The only downside of a hard money loan is that the interest rates are typically higher than those offered by traditional lenders. However, if you can find a firm with competitive rates, the benefits of this loan will far outweigh the costs.
California Hard Money Direct offers just that. If you need a quick and easy way to get funding for your next project, this is one of the best services you can work with.