A hard money loan is an investment-based form of cash financing through which a lender gets funds backed by real estate. Hard money loans generally are issued by businesses or private investors. In general, the amount of loaned funds and the interest rates are based on the property’s market value. This type of loan is usually secured with the borrower’s home. The lender can either take the home as security or a loan from a lender that is willing to extend the loan to you.Learn more about us at What does Hard Money Mean
In order to get a loan, you need to pay a certain amount of down payment which will be used as collateral for the loan. The borrower can also use a co-signer who will be expected to co-sign for the loan should you default. A good credit score is considered in determining your eligibility for a hard money loan. You are not required to show a credit check before you apply for the loan but you can get it done through your lender.
You can borrow as much money as you want as long as you have the means of paying it back in the future. It has a lower interest rate than other types of unsecured loans. You can also borrow a smaller amount of money compared to home equity loans or car loans. The amount of money you can borrow is determined by your credit score, income and your personal assets. When looking for a lender, make sure to research all your options. Talk to your bank or the Better Business Bureau to find out if any complaints were filed against them with the government.