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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It may seem obvious, but nobody just googles the term "hard money loan" and gets the money they need for a home or remodel. There is a process to follow, as with any loan. The fact that hard money loans are faster and require less paperwork than a standard mortgage from big banks does not mean 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
Anytime a borrower seeks out alternative or special financing, like a hard money loan, it is extremely important to do the homework. Everyone considering a hard money loan should know what to expect, how to evaluate the options presented and what kinds of documentation will be expected at closing. ...Read More