Seal your deal with Hard Money lenders in Dallas

Hard money is a short-term loan that is secured by real estate. This loan is funded by a fund of investors against traditional lenders including credit unions and banks. The term of the loan is generally around 12 months, however, the term may be extended for longer terms, say 2 to 5 years. This loan needs monthly payments of interest or principal along with interest payments.

The amount of money lend by hard money lenders Dallas is based primarily on the property’s value. This property might be owned by the borrower that he wants to use as collateral or it might be the property, which a borrower wants to acquire.

Hard money lenders are concerned with the value of a property instead of the borrower’s credit. Borrowers who cannot receive traditional financing because of short sale and recent foreclosure can obtain hard money when they have adequate equity in their property used as collateral. Hard money lenders can give loans when banks say “No.”

Who are hard money lenders?

Hard money lenders, Dallas, offer capital to individuals and businesses for purchasing real estate or for financing business development projects. This loan is mainly used in real estate transactions including commercial developments or rehabilitation projects. The loan lenders finance a part of these transactions and these loans have strict terms and conditions. You will find these loan lenders on the internet instead of traditional bank branches. Several private investors offer hard money loans.

Lending Practices

Hard money lending includes rapid loan turnaround times along with strict terms. Consumers can access a huge amount of money within 24 hours. The government agencies do not regulate the lending practices and lenders can make their own rules related to how much money they can lend, who they want to lend, and under what conditions.

Hard money lenders, Dallas, offer loans to people who are considered very risky by traditional banks. Applicants do not have financial statements or verifiable income. Even some applicants have no or little credit history. Moneylenders offer loans for investments that are considered highly risky. Hard money lenders offer real estate financing, which is severely distressed or under construction. The risks accepted by these lenders are high than traditional banks.

Lending Criteria

The criteria for hard money loans depend on the kind of investment. In several cases, these lenders do not give their approval based on credit history, however in asset evaluation, which is being acquired. People who have been refused traditional financing or people with little or no credit qualify for hard money loans till the time assets meet the eligibility criteria.

Many hard money lenders of commercial property consider the building’s value while making the loan approval decision. The hard loan lenders approve loans depending on the property’s value. Depending on the terms of the lenders, applicants may expect to get loans between 50-80% of the property’s value that they want to purchase.

Hard money lenders, Dallas, provide loan terms, which are considered higher than traditional lenders. The 

interest rates on loans range between 18-26%. The repayment schedules for loans are shorter that range between 6 months to 5 years.

Bottom Line

Financing through hard money loan is a way of borrowing money and property is used as collateral. Banks are generally concerned with financial history, credit scores, and the ability to repay the loan. The loan approval and lending application process may be tedious and lengthy. However, with hard money loans, this is not the case. Borrowers can get a loan quickly as hard money lenders, Dallas, are very less concerned with credit scores and your personal finances.