There are situations in which consumers may find themselves where a hard money loan may be the easiest way to get through a challenging financial situation. But what exactly are hard money loans?
What does it take to get one, and how do you find hard money lenders?
If your financial position is less than perfect but you have assets like an owner-occupied home, hard money may be the easiest way to get the short-term cash you need.
What Is a Hard Money Loan?
The term “hard money” is most frequently used in North America, particularly the United States and Canada. It is a loan secured by a borrower’s hard assets and was used most frequently for commercial loans like new construction. Today, however, more homeowners are turning to hard money loans. Interest rates are generally higher than conventional commercial loans but often qualifications for these loans are much lower. This means even those with poorer credit ratings will frequently qualify. They are designed to be shorter term loans but longer-term private financing options are also available. This type of loan also involves much less paperwork and government regulations because they are most often secured from private investors and lenders as opposed to big banks. They became popular again after the economic crisis of 2009 when banking regulations became so restrictive as to limit the accessibility of loans, particularly home mortgages.
What Does It Take to Acquire One?
With a hard money loan, real assets are often more important than credit ratings. Lenders appraise your assets and these private lenders will often provide a loan to value (LTV) ratio of 65-75%. This translates to the potential availability of a $15,000 loan on real assets of $20,000. You will need to prove you have ownership of assets used to acquire the loans. Lenders will require identification and often other financial, tax and employment information. A property appraisal will likely be involved. The process is, however, far less tedious and much faster than that of a large bank, credit union or other financial institution.
Finding Hard Money Lenders
As these types of loans grow in popularity, finding hard money lenders is becoming easier. The reasons are simple. Hard money loans make economic sense for investors, borrowers, and the communities they serve. The can be secured relatively quickly with less paperwork. Finding hard money loans is simpler with private lenders like Private Loan Financial. PLF connects borrowers with investors who have money to lend. The purpose of the loan is virtually inconsequential. It may be used for home improvements, paying off other debts like credit cards or even to purchase another property.
Why Private Loan Financial?
PLF specializes in residential and commercial hard money loans for both borrows and lenders. This fills that void created by the highly regulated banking industry. It allows more consumers to secure loans through a simpler, quicker process.
There are multiple reasons for selecting Private Loan Financial.
- Ease of use. Getting started is as simple as filling out a short online form.
- Financing for a variety of projects. Secure residential, multi-family, land, commercial, and construction loans through PLF.
- Use the funding as you wish. Pay off high-interest credit cards, consolidate loans, or get needed home improvements.
- PLF provides the tools for success. Seamlessly go from pre-approval, to contract, to closing.
- The process is simpler, quicker than traditional loans. Private Loan Financial offers an easier, faster vehicle for securing money than traditional banking sources.
Contact PLF today and discover why hard money may be your easiest source for residential or commercial financing.
