The loans of hard money could be explained as mortgages from companies or individual investors’ for refinancing or purchasing the property. This kind of loans usually is funded very fast and it is much easier in qualifying for than the traditional type of financing. Before giving the hard money loans, the lenders should make sure that the property is equal with the sum of money needed for funding. The equity of the collateral property is the total cost of the property without any mortgages.
By the way, hard money lenders try to have a reliable prospect that the loan will be repaid in any case. To this end it may be necessary for the recipient of a loan to have a stable income, a good credit story, and some assets and they are only required as an additional insurance of receiving the absolute profit from this business.
As usual, hard money lenders create some small companies combining only a few lenders lending their own money. And it gives some real advantages. First of all, the hard money loan doesn’t need to be considered and discussed in several conference halls or boardrooms to reach the result.
Secondly, you save a lot of time and it will definitely is a benefit for your business. In New York it’s not a problem to find the hard money loan as there are some reliable hard money lenders’ companies that serve all of the main metropolitan cities in New York.
When you obtain a hard money loans in New York, there are a few things you should keep in mind. Imperfect credit is not a disaster if you want to get the residential hard money loan in New York. Such unfortunate situations as foreclosure, no seasoning or bankruptcy are considered. New York programs of hard money loans are made for a quick closing with the minimum documentation needed. The interest rates of hard money bridge loans may range from 10%-18% to the near about 60%.
It is necessary to remember that every year lots of residential properties are taken because of the bankruptcy protection or foreclosure. Really often these situations happen out of the borrower’ or borrowers’ control. In New York it is easy to find hard money loan for a short period of time if you could be defined as a borrower who needs some time for the property stabilization and solving your financial problems.