FAST HARD MONEY LOANS
Hard money loans are short-term mortgage loans that are secured by real estate. Bridge loans are another name for them. If you are looking to finance your investment property, you may want to get fast hard money loans. However, it's critical to understand how these loans work before applying for one.
What is a Hard Money Loan?
This is a type of short-term mortgage loan made available by private lenders. These are non-conforming loans that are secured by the property they are used to purchase. If a borrower fails to repay a hard money loan, the lender may take possession of the collateral.
This sounds a lot like a standard mortgage loan. If you acquire a home loan, the house serves as collateral. The lender may file a foreclosure action against you if you do not pay. However, there are some significant distinctions in who provides these loans, payback terms, what is required to be accepted, and what they are used for.
How Do Hard Money Loans Work?
Hard money loans function by allowing borrowers to obtain a short-term loan based on the value of the underlying property used as collateral. Typical loan periods range between 12-36 months. Depending on how the loan is arranged, you may only be needed to pay interest during that period, with a single substantial lump-sum payment due at the end of your loan term.
Top mortgage lenders often consider your credit score and income when determining how to qualify for a hard money loan. However, they may be more concerned with your track record in real estate investing and the worth of the property you wish to purchase. Depending on the property's value, the lender may need you to provide a substantial down payment. Again, this is because they want to see that you have some vested interest in the transaction.
Who Should Use Hard Money Loans?
Hard money loans are ideal for serious home flippers and real estate investors. A hard money loan is an excellent alternative for financing if you want to buy a house with the intention of immediately selling it for a significant profit. Also, if you are investing in a property, such as an apartment or a hotel, and you intend to make a profit before the term is up, you should consider a hard money loan. Finally, as a business owner, you can turn to hard money loans to purchase commercial real estate if you cannot obtain traditional financing.
How to Get a Hard Money Loan
It's not difficult to find non-traditional lenders—but you don't want to borrow money from just anyone. So, it is critical to consider the lender's reputation and interest rates. You could also seek advice from a reputable real estate agent or a fellow house flipper.
If you are looking for fast hard money loans, contact Tower Fund Capital today. We strive to help property buyers accomplish their real estate dreams. We provide simple, stress-free hard money loans for real estate investments at low-interest rates, so you may acquire the property you need without having to deal with a bank. Contact us today for more details about our program.
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