A hard money loan is a loan secured by an asset, such as real property, lent to real estate investors for a shorter term and a higher interest rate than a traditional mortgage. The conditions and criteria are based on the value of the property as opposed to the borrower’s credit scores or lending history.
For real-estate investors, hard money loans come with many perks. Even though they generally come with higher interest rates than a typical mortgage, an investor doesn’t have to live in the house to secure the loan. Further, there’s usually no prepayment penalty. Finally, hard money loans tend to close fast, which allows investors to get a jump on a competitive deal quickly. Some hard money lenders, such as The Funding Warehouse, structure their deals creatively to suit each investment they lend on.
How do I apply for a Hard Money Loan?
Each lender’s process is different. At The Funding Warehouse we begin with the property specs: the location, existing value, any repairs required, and the area comps. We’re extremely experienced in property valuation and repair, so if the numbers work for us, we’ll go from there. Contact us at The Funding Warehouse for more information.