What is hard money loan?

Here are different points that will explain you all you need to know about Hard money loan:

1. Hard money loan is a loan being made by a private investor instead of a conventional lender(such as Bank of America, Chase, Wells Fargo, etc)

2. Hard money loan also considered to be an Angel loan for the reason of the type of financing private investors provide to help real estate investors when they can’t find any financing help outside.

3. Hard money loan will let you qualify for a real estate loan even if your credit is really low and you have Mortgage lates, foreclosures, Bankruptcy, etc.

4.Hard money loan will help you even if you lost your job and have no income, but need help to qualify.

5. Hard money loan Will qualify you mainly based on the equity you have in the subject property.

6. Hard money lenders will literally “Go outside the box” for the right deal.

7. Hard money lenders require very minimal documentation in order to fund a deal.

8. Hard money loan can be funded within 48 hours, while conventional real estate loan may take up to 45 days.

9. Hard money loan can cost you anywhere between 2 points of the loan up to 5 points of the loan. Watch your self from investors that are asking for 10 points and more then that.

10. Hard money loan interest rates will start at 8.5% and will go as high as 15%.

11.Hard money loans terms are for as high as 5 years, but in most cases will be less then 2 years.

If you need more information about hard money loans let us know.