What makes a hard money loan unique? They are those backed by real, hard assets, also known as tangible property. Tangible properties are used as collateral, which is then used to repay the hard money loans in a timely manner. Also referred to as a type of bridge loan, hard money loans are short-term investments that are efficient and flexible. They are used for short-lived, private lender loans in which investors can fix and flip real estate.
These are a type of private loans that are much easier to secure than a typical bank loan. While traditional loans are granted based on the borrower’s credit, hard money loans are those based strictly on the value of their home or property. That value is what ends up securing the loan. This makes it easier to qualify for these loans, just as long as you get approved.
While it’s easier to obtain a hard money loan since lenders are looking for you to pay back the amount in a shorter amount of time, make sure that you are able to pay back the loan in a timely manner. Be sure not to bite off more than you can chew!
These loans are perfect for those with low credit scores, or don’t have the time to go through a typical loan process through a bank. Do you need a hard money loan or have any questions? We’re here to help! Give us a call at (281) 377-4708!