Hard money lenders in Florida usually offer balloon loans to potential borrowers. This is a unique loan structure which enables borrowers to make small payments during the loan’s term. After reaching the maturity date, borrowers are often required to pay a lump sum so as to completely resolve the obligation. This structure benefits lots of borrowers because this gives them enough time to make the necessary preparations for the last payment. In most cases, balloon payments are only offered to hard money loans that last for one-two years so borrowers will have enough time to prepare the money to fully pay the loan.
As a means of ensuring that you deal with hard money lenders in Florida who won’t subject you to encounter a fraud in the end, it is crucial for you to check out the upfront fees that they require borrowers to pay. In normal cases, the upfront fees that you will need to pay are the appraisal, attorney fee and title and possibly a site inspection for a commercial or rehab deal. This will let you know if you are dealing with a fraud and start looking for a more trustworthy one