About Investment Property Loans
A hard money loan for an investment property is a private loan made to a real estate investor for the purpose of purchasing or refinancing a rental home or other income-earning real estate asset. These types of loans are always secured by the investment property itself, generally by a deed of trust. These loans are typically made for a longer term than an average hard money loan but may also carry a lower rate of interest than shorter-term loans. Investors who take these types of loans are generally unable to receive a traditional bank loan or must close quickly and are therefore willing to pay a higher rate of interest and/or contribute more cash at closing than with a traditional bank loan. Due to the higher rate of interest, the borrower will often intend to refinance the loan at a lower rate at some point in the future.
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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