In comparison to banks, hard money lenders in Texas often charge their borrowers with higher rates of interest. The main reason behind this is that the loans or deals that they offer to their clients do not adhere to certain bank standards including verification of the credit score, assets and income of borrowers. These lenders also typically require their potential borrowers to meet certain criteria to determine the amount of hard money loan that they can offer, the specific kind of real estate to lend on including land, residential or commercial property as well as the minimum and maximum sizes of loans.
If you plan to get the help of hard money lenders in Texas, then it is crucial for you to look for someone who uses the most flexible means of structuring their loans. Look for a lender whose goal is to empower his/her borrowers to reach their financial goals. A strong indication that you are dealing with a good and flexible lender is when he/she does not use rigid rules on vacancy rates, types of property, debt service coverage and any other obstacles that might prevent the right execution of the loan. It is also necessary for you to choose a hard money lender who offers fair pricing.