About Hard Money Refinancing
"Hard money" refinancing refers to a specific type of loan that is secured by real estate. This type of loan is typically taken by individuals or businesses who need to quickly get cash out of equity in a property but who cannot easily obtain a traditional loan with a bank or credit union. Lenders who offer this type of asset-backed refinancing tend to charge higher interest rates and fees than banks and generally offer lower "loan-to-value" ratios (the percentage of the property's value vs. the amount of the loan). This is due to the speed and convenience of the loan as well as to account for the higher risk associated with borrowers who have lower credit ratings. Common reasons for taking a cash-out hard money loan are buying out a business partner, purchasing equipment or working capital, or making payroll.
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Many property buyers look for alternatives to the big bank loan process that can take a long time to fund and often require excessive paperwork. There are many different types of special financing available. This is a short overview of some of the options US buyers have today. Hard money refers to...Read More
A deed of trust, also called a trust deed, is a document that represents a real estate purchase where there is a loan involved. Many people who have a deed of trust simply refer to it as their mortgage or their home loan. But having a deed of trust is technically a little bit different from that. ...Read More
While hard money loans are known for funding faster than more traditional mortgage loans and they often require much less paperwork, there is still some paperwork and there will be a closing. It's a good idea to prepare, going in with an understanding of what will happen and what kinds of documents...Read More