There are plenty of great properties throughout the Philly and New Jersey region. Finding the right one for your next project or investment is important and can sometimes be tricky, but even more tricky is locating the funds you need to make your move.
That’s where a hard money loan can come in. These are somewhat unconventional loans, but that doesn’t mean that they aren’t worth looking at. In fact, we’ve found that our hard money loans are one of the best options for many who are in unique situations. If you’re not sure what these types of loans are, let’s take a closer look.
- Hard money loans are loans that could be backed by the property itself. Instead of things like the property income, lenders look at the overall value of the property in question. That property secures the loan and if you fail to repay it, the lender will take over ownership of the home or property. Many Hard Money Lenders are looking at borrowers credit these days.
- These loans are offered through private lenders and as such have various terms or requirements. Each individual lender creates their own criteria for qualification of the loan, and also structures the terms. It’s important to review these terms and conditions carefully, but when you find a fir hard money lender you’ll recognize it quickly.
- Hard money loans are used in numerous situations. For example, when you need to purchase a property quickly due to an auction or something similar but don’t have the time to apply for a traditional mortgage, a hard money loan can give you the money fast. Then you can repay the loan when you get the traditional loan.
- Hard money loans cut out a lot of red tape and often ignore things that could lead to being denied a traditional loan. As such, they’re often used as a bridge loan for those who are moving a project or business deal forwards and need quick cash.
Simply put, a hard money loan could be exactly what’s needed when you’re trying to take a step forwards but need additional funding. No matter the situation you’re in, talking to a hard money lender could be the right solution.