A hard money loan is a loan taken with the property value as a collateral. Creditworthiness is a requisite. Most loans of this kind are short-term and offered by private investors. Although they are closely similar to subprime loans, these loans’ LTV ratio is rather lower. Interest rates are also much higher compared to the […]
Should You Consider a Hard Money Loan?
Hard money loans are asset-based loans in which the only collateral is the property in which the borrower is investing. Common Hard Money Loan Characteristics These private mortgage loans are considered extremely risky for the real estate investor. They are available only through private hard money lenders, rather than through banks or other financial institutions. […]
Securing Real Estate Financing through a Hard Money Lender
One factor that has always appealed to borrowers about hard money loans is the fact that the approval process usually goes much more quickly than it does when applying for traditional mortgage loans. This is because many private lenders don’t bother to check your credit score or income – they are much more interested in […]