If you are looking for hard money loans, then our company can assist you. Our firm works with the top hard money lenders that offer asset-based lending to investors looking for funding on residential and commercial investment deals. Our lenders offer these loans for individuals looking for long term investments, or rehab deals. If you need money the fast, and easy way with an asset-based loan, then you have come to the right place. Our Hard money lenders focus on the value of the collateral property rather than the borrower’s ability to repay based on their own personal income or assets, as is common with other traditional lenders. We fund deals that do not conform to bank standards such as verification of borrower’s income, assets, or credit score. Our lenders have the knowledge and capital you need so you can confidently make offers on real estate deals.To get started just call us we’ll be on the way to getting your deal funded. To find out more about hard money loans contact us today.
Hard money lenders are lending companies offering a specialized type of real-estate backed loan. They lend short-term capital (otherwise known as bridge loans) that provide funding using the price of the property serving as collateral. Hard money lenders tend to focus on the value of the collateral property rather than borrower’s capacity to repay based automatically personal income or assets, as is common with other lenders. Hard money lenders typically charge higher rates than banks because they fund deals that do not adapt to bank standards such as verification of borrower’s income, assets, or credit rating.
Hard money lenders will offer you an array of requirements on what much they lend (loan to value), what types of real-estate theylend on (commercial, residential, multi-family, land) and minimum and maximum loan sizes. Hard money lenders that lend on houses should be licensed through a regulatory agency and throughout the National Mortgage Licensing System (NMLS). Borrowers can verify the loan companies are licensed with the NMLS in order to prevent problems at closing, as many states have to have the lender’s license number to be on the loan documents. Devoid of the license number about the loan documents could prevent the loan from closing.
Collateral means property that is certainly being used to secure the credit. This will include residential, multi-family, commercial, or raw land properties. However, often it includes other assets of the baby or business borrowing the hard money. On many occasions a difficult money lender will offer you a reduced loan size dependant on a lower ”Loan to value ratio”. What this means is they could lend a lower area of the exact property value. Therefore it is common for real estate investors to supply additional real-estate as collateral in order to get a larger amount borrowed. This is known as cross-collateralization.
Hard money loans are more expensive than traditional loans as they are not dependant on traditional credit guidelines which protect investors and banks from high default rates. As hard money lenders may not have to have the income verification that typical lenders require, they could experience higher default rates (and, thus, charge better pay of curiosity). Individuals companies may opt to require a hard money loan after they cannot obtain typical mortgage financing they do not have acceptable credit or another documentation typically necessary for a conforming loan. However, federal law now necessitates that all hard money lenders verify ”capacity to repay” – per the Dodd-Frank Act of 2010 – on all house loans. In order to prove ”capacity to repay”, licensed hard money lenders will also be asking for documentation. This documentation may not be as stringent since the documentation required for a standard loan, as well as the hard money lender may go through the numbers differently, but most likely, borrowers will not need to provide a tax return and bank statement.
Term of loan: hard money lenders are normally of your shorter-term than conventional loans, although you will find terms of up to 10 years based on the lender. Due to shorter-term, borrower should ensure they have the time necessary to pay off the credit in the event it becomes due.