About Hard Money Loans
A private money or "hard money" loan is a loan made to an investor or other individual using real estate as collateral. Typically, the lender in these scenarios is an individual or private lending company as opposed to a bank or credit union and the borrower is most commonly a real estate investor who needs cash to purchase or rehab a property. Hard money loans are usually taken by borrowers who have been denied a loan by a traditional lending institution or who need to close a transaction more quickly than a bank will allow. For this reason, the rates and fees associated with such a loan tend to be higher than for a conventional mortgage. Additionally, hard money lenders may require the borrower to bring a significant amount of cash or equity to the closing in order to protect their interest in the event of a default.
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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
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
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