Hard money loans are loans backed by real estate property in
the form of collateral. These loans are short termed usually take around 12
months as repayment period however, they can be extended upon evaluation of
request. As any other form of loan, hard money loans are also meant to be
repaid within the specified period along with monthly repayment plus an
interest charge.
None of the shady lending techniques are involved with hard
money loans these days. Although this type of lending is done by private lenders,
there is a lot that has changed since the past and now, hard money loans have
become a reliable short termed loan borrowing facility for people with great
aspirations.
Hard money loans prove to be as saviors in uncertain times
when all else fails and banks refuse to lend the loan. Hard money lenders will
accept the loan request as long as the backup property has sufficient equity to
repay the loan if the borrower fails to pay on his own.
Hard Money Loans As Ideal Borrowings
There is no pressure on the borrower to go for a hard money
loan when he is credible to acquire a bank loan. Possible scenario for a bank
loan to be an ideal borrowing is when one has no issues with the loan taking a
month or two to be funded while they have a great credit history, healthy
income, years of employment at the same place and a lot more. Bank loans are
good mostly for residential payment purposes.
Whereas, a hard money loan will be anybody’s no.1 choice if
they need an immediate loan, for an urgent payment or most likeably for a real
estate investment when acting on the right time is significantly essential for
an investor.
Most properties get many bids which make the property
difficult to purchase however, with a hard money loan that can be funded super
quickly like in a matter of 2 to 3 days or even on the same day the investor is
likely to win the bid over other bidders offering conventional financing for
the same property.
People with unstable or new employments are still free to
acquire a loan form a hard money lenders in Dallas. A person’s income does not
restrict them from borrowing as long as they have a property to be placed as a
collateral. Basically this property value is also a determining factor of the
loan that can be obtained. Work stability or income history is yet another
limiting factor that acts as a prerequisite for loan approval from banks,
making hard money loans a simpler choice.
How Are Interest Rates Charged On Hard Money Loans?
Interest rates charged on hard money loans tend to vary from
lender to lender and state to state. Interest rates are determined by the
competition in the market as well as depend greatly on the loan to value ratio.
So the charge one might be getting on his borrowed loan can be either high or
as low as 10 to 15 percent along with mortgage points that can be anywhere around
2 - 4%.
So if you are planning to get a quick loan with simple terms
and conditions and short repayment period, then discuss your plan with the hard money lenders Dallas who offer all these than make no delay and live up your plans
for a successful business today and tomorrow.
