5 Uses For Loans
Not many understand what hard money loan is; well in simplest terms, it is a specific asset based loan where the borrower gets funding and it’s secured by the value of parcel of real estate. Oftentimes, people talk to private investors/individuals or companies to apply for a hard money loan. As for the rate of interest however, it is usually higher than traditional lenders.
Normally, most loans are being used for projects that can last for months or at times, years. It’s like bridge loan that it carries the same criteria for cost and lending to borrowers. A big difference is the fact that bridge loan is referring to commercial property or that might be in transition and doesn’t quality yet for traditional financing. When it comes to hard money however, it’s deemed not only as asset based loan but also, a distressed financial situation including bankruptcy, arrears on existing mortgage as well as foreclosure on proceedings occurred.
In the next paragraphs, you are going to discover some sources where you can find hard money lenders in case the time comes that you need such loans.
Number 1. Commercial banks – one type of lender that you can turn into in case you needed money is commercial banks. There are many lending programs that you can apply for in these banks and say that you have a traditional business setup, then you can apply for hard money loan on these financial institutions to grow your business.
Number 2. Mortgage banks – you should not disregard mortgage bank as your option especially if you need mortgage loans. Such hard money lenders provide money you need in buying a property. However, you must not be using this as your long term solution if ever you decided to push through. Oftentimes, the terms are short and you’ll need to come up with balloon payment right at the end of your term.
Number 3. Mortgage brokers – another popular type of hard money lenders you may try is mortgage broker. They have wide varieties of lending sources that can be used in getting the best possible deal. With such kind of broker, you can secure money you need in buying a property.
Number 4. Finance companies – as a matter of fact, many finance companies are also offering hard money loans. With these finance companies, they can provide the money needed for almost any project that you need funding.
Number 5. Online lending companies – checking out for lending companies online is actually one of your easiest options. This makes everything less stressful and more convenient since from the application of the loan to making repayments can be done over the web.