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Construction Hard Money Loans

Construction Hard Money loans or Private Capital Construction Mortgage is a particular kind of asset-based loan funding with which a customer gets funds secured by the value of a property. With no credit check or income documents required, these loans are very simple and quick to fund. The most common use for these loans are fix and flips and short term financing needs.

Advantages for Hard Money Loans?

One of the main advantages of hard money loans is that they can be obtained quickly and easily, often in as little as a few days. This is because hard money lenders are primarily focused on the value of the property, rather than the borrower’s creditworthiness or income. As a result, hard money loans are often used by real estate investors who need to secure funding quickly, such as in the case of a fix and flip or a short sale.

Another advantage of hard money loans is that they can be used for a wide variety of property types and purposes. This includes single-family homes, multi-unit properties, commercial properties, and even land. Additionally, hard money loans can be used for both purchase and refinance transactions, as well as for construction and renovation projects.

While hard money loans can be a useful tool for real estate investors, they do come with some drawbacks. One of the main disadvantages is that they typically have higher interest rates and fees than traditional loans. This is because hard money loans are considered to be higher risk for the lender, and as a result, they charge higher rates to compensate for this risk.

Another disadvantage of hard money loans is that they typically have shorter terms than traditional loans. Most hard money loans have terms of just 1-2 years, which can make it difficult for borrowers to hold onto the property for a longer period of time. Additionally, hard money loans are typically only issued for a percentage of the property’s value, usually around 60-70%.

Despite these drawbacks, hard money loans can be a valuable tool for real estate investors. If you are considering a hard money loan, it’s important to do your research and find a reputable lender with competitive rates and terms. Additionally, it’s important to have a clear plan in place for how you will use the loan proceeds and how you will exit the investment. With the right lender and the right plan, a hard money loan can be a valuable tool for achieving your real estate investment goals.

In conclusion, hard money loans are a type of alternative financing that can be used for real estate investment opportunities. They are issued by private investors or companies and are based primarily on the value of the property being used as collateral.

One of the main advantages of hard money loans is that they can be obtained quickly and easily, often in as little as a few days. Additionally, hard money loans can be used for a wide variety of property types and purposes. However, hard money loans typically have higher interest rates and fees than traditional loans, and have shorter terms. Borrowers should carefully consider their options and have a clear plan in place before committing to a hard money loan.

These loans are ideal for the people who are credit impaired. This is because, as long as you have good collateral, the hard loan lenders will offer you a loan even if you are bankrupt.
These loans are ideal for those who want funds quickly—this is because the loans close quickly.

The loans are also ideal for the foreign nationals who will not be given loans in other institutions since they are non-citizens of a given country.

Hard money loans have several advantages:

One great advantage is that the loans are easier to access; therefore, if you don’t meet the qualifications of the conventional lender, you can easily access the loan without undergoing rigorous paperwork.

  • Immediate Decision. Same Day Approvals
  • Funding in 72 Hours once we have a complete loan file
  • Loans Focused On Your Equity, Not Your Credit
  • Flexible Terms To Fit Your Needs
  • Less Paperwork than conventional Loans
  • Decision based on value of your asset, not your credit
  • No Income Check loan programs available
  • Low FICO and Credit Problems OK
  • Foreclosure, Bankruptcy OK

 

If you have a bad credit history but you have a good property to offer as collateral, then you should consider taking hard money loans. You no longer have to wallow in self pity because you have a not-so-good credit history.

Construction Hard Money Loans

Construction Hard Money loans or Private Capital Construction Mortgage is a particular kind of asset-based loan funding with which a customer gets funds secured by the value of a property. With no credit check or income documents required, these loans are very simple and quick to fund. The most common use for these loans are fix and flips and short term financing needs. Private Equity Construction Loans are normally provided by small personal investors, hedge funds and other private institutions that are not traditional banks. Most hard money loans are not based on the borrowers credit worthiness but rather on the asset/property. Because of the risk taken by the loan provider, interest rates are usually higher than traditional home loans. Hard money loans have shorter terms and normally are for 6 months to 5 years and are not meant long term financing solution.

Why Hard Money?

The certifying standards for a difficult Hard Money financing differs extensively by loan programs and loan function. Credit ratings, earnings and various other traditional loaning standards could be examined. Nonetheless, most equity based loan providers mainly certify a loan quantity based upon the value of the asset/property being used as collateral. The LTV for private equity loans are typically between 65%-80% of the property value

Private Funds

Hard money loans are loans that are given by private entities i.e., they are not offered by banks, credit unions, societies and other conventional money lenders. What makes the hard loans unique is that the lender does not need to know your financial situation (whether you can be able to repay the loan). All you need is a good property that you can place as collateral. Usually, the lender will offer 40% to 70% of the value of the property offered as collateral. Since no financial report is required to access these loans, the loans are ideal for people with a bad credit history but have property to offer as collateral.

How Conventional and Hard Money Loans Differ

The main difference between the two is that the traditional loans are given by credit unions, banks and other institutions, while the hard loans are given by lenders who are privately funded. Another difference is that conventional loan lenders require more documents from you in order to offer you the loan. For example, a bank will need to proof that you are capable of repaying the loan (for example the bank may require you to provide your pay slip and other supporting documents). On the other hand, the hard money loan lenders don’t require you to provide proof that you are capable of repaying the loan; all you need is to place a good property as collateral and the lender will give you a loan that is up to 70% the value of your collateral. Conventional loans take long to close (can take up to months); hard money loans are usually quicker to close. Finally, the interest rates charged for the hard loans are usually higher than those charged for the conventional loans. The reason why the interests charged are higher is because the hard loan is usually more risky than the conventional loan.

Who Qualifies For The Hard Money Loans?

These loans are ideal for the people who are credit impaired. This is because, as long as you have good collateral, the hard loan lenders will offer you a loan even if you are bankrupt. These loans are ideal for those who want funds quickly—this is because the loans close quickly. The loans are also ideal for the foreign nationals who will not be given loans in other institutions since they are non-citizens of a given country. Advantages of Hard Money Loans Hard money loans have several advantages: Rates starting at 7.99% One great advantage is that the loans are easier to access; therefore, if you don’t meet the qualifications of the conventional lender, you can easily access the loan without undergoing rigorous paperwork. Another advantage is that the loan has many collateral options. For example, you can use your home or the future cash flows of the property as collateral. This enables you to access a loan regardless of the property that you have. Immediate Decision. Same Day Approvals Funding in 72 Hours once we have a complete loan file Loans Focused On Your Equity, Not Your Credit Flexible Terms To Fit Your Needs Less Paperwork than conventional Loans Decision based on value of your asset, not your credit No Income Check loan programs available Low FICO & Credit Problems OK Foreclosure, Bankruptcy OK Hard Money Financing If you have a bad credit history but you have a good property to offer as collateral, then you should consider taking hard money loans. You no longer have to wallow in self pity because you have a not-so-good credit history.

Why Hard Money?

The certifying standards for a difficult Hard Money financing differs extensively by loan programs and loan function. Credit ratings, earnings and various other traditional loaning standards could be examined. Nonetheless, most equity based loan providers mainly certify a loan quantity based upon the value of the asset/property being used as collateral. The LTV for private equity loans are typically between 65%-80% of the property value.

Private Funds

Hard money loans are loans that are given by private entities i.e., they are not offered by banks, credit unions, societies and other conventional money lenders. What makes the hard loans unique is that the lender does not need to know your financial situation (whether you can be able to repay the loan). All you need is a good property that you can place as collateral. Usually, the lender will offer 40% to 70% of the value of the property offered as collateral. Since no financial report is required to access these loans, the loans are ideal for people with a bad credit history but have property to offer as collateral.

How Conventional and Hard Money Loans Differ

The main difference between the two is that the traditional loans are given by credit unions, banks and other institutions, while the hard loans are given by lenders who are privately funded. Another difference is that conventional loan lenders require more documents from you in order to offer you the loan. For example, a bank will need to proof that you are capable of repaying the loan (for example the bank may require you to provide your pay slip and other supporting documents). On the other hand, the hard money loan lenders don’t require you to provide proof that you are capable of repaying the loan; all you need is to place a good property as collateral and the lender will give you a loan that is up to 70% the value of your collateral. Conventional loans take long to close (can take up to months); hard money loans are usually quicker to close. Finally, the interest rates charged for the hard loans are usually higher than those charged for the conventional loans. The reason why the interests charged are higher is because the hard loan is usually more risky than the conventional loan.

Who Qualifies For The Hard Money Loans?

These loans are ideal for the people who are credit impaired. This is because, as long as you have good collateral, the hard loan lenders will offer you a loan even if you are bankrupt. These loans are ideal for those who want funds quickly—this is because the loans close quickly. The loans are also ideal for the foreign nationals who will not be given loans in other institutions since they are non-citizens of a given country. Advantages of Hard Money Loans Hard money loans have several advantages: Rates starting at 7.99% One great advantage is that the loans are easier to access; therefore, if you don’t meet the qualifications of the conventional lender, you can easily access the loan without undergoing rigorous paperwork. Another advantage is that the loan has many collateral options. For example, you can use your home or the future cash flows of the property as collateral. This enables you to access a loan regardless of the property that you have. Immediate Decision. Same Day Approvals Funding in 72 Hours once we have a complete loan file Loans Focused On Your Equity, Not Your Credit Flexible Terms To Fit Your Needs Less Paperwork than conventional Loans Decision based on value of your asset, not your credit No Income Check loan programs available Low FICO & Credit Problems OK Foreclosure, Bankruptcy OK Hard Money Financing If you have a bad credit history but you have a good property to offer as collateral, then you should consider taking hard money loans. You no longer have to wallow in self pity because you have a not-so-good credit history