Hard Money Lending
When a borrower is in need of a loan and traditional means of obtaining a loan are not available
to that borrower, a hard money loan is an attractive viable option that can help the borrower in
achieving their goal.
Traditional loans...
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Hard Money Lending
When a borrower is in need of a loan and traditional means of obtaining a loan are not available
to that borrower, a hard money loan is an attractive viable option that can help the borrower in
achieving their goal.
Traditional loans place a great deal of emphasis on a borrower’s ability to
repay a loan by looking at the borrower’s income, credit, and assets.
Hard money loans, on the
other hand, work differently from traditional loans in that they are more focused on evaluating a
borrower’s collateral rather than focusing on a borrower’s personal income or credit.
Since this
is the case, it takes less time to secure a loan via hard money lending than it does to through
the more traditional means.
Collateral can range from residential, multi-family, commercial, or raw land properties.
Basically,
nearly any property that is being used in order to secure a loan is considered to be collateral.
Typically hard money lenders keep their loan-to-value ratios fairly low.
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