Hard money loans are short-term loans that are secured by real estate. The loan is backed by the value of the property, and the borrower has the option of selling the property to repay the loan. The benefit of a hard money loan is that it’s rather easy to get. In fact, property investors use hard money loans all the time to fund real estate deals. There are several types of hard money lenders available, each offering its own criteria and interest rates.
If you need cash sooner rather than later, then a hard money loan from Charlotte NC hard money lenders might be the right choice for you. Hard money loans are short-term loans lasting between three months and five years. They are unsecured, which means you don’t need to put up any collateral. However, hard money loans can be good alternatives to bank loans.
Short Processing Time
The process of a conventional loan is usually long and tedious. The agreement should be made in writing and the process of verification, appraisal, underwriting and funding can take as much as 45 days. With a hard money loan, you need not worry about all these. You can get a hard money loan within 24 hours after you apply for it. It is not always the case that the interest rate is higher in hard money loans than in conventional loans.
The speed at which hard money loans can be processed is often hard to find with other types of loans. The reason for this is that hard money lenders are willing to do their own vetting when it comes to a borrower. They do not have to wait for an appraisal or for a third party to verify a person’s credit score. This can shave days off the time it takes to get a loan approved.
Fewer Requirements
Many people use hard money loans to buy properties without having to go through the lengthy process of getting a bank loan. However, there are few requirements for getting a hard money loan, and most people are eligible to get one. The personal loan terms are flexible and are not dependent on your credit score or your income.
There are few requirements for Charlotte NC hard money loans when compared to traditional loans. Unlike banks and other lending institutions, hard money lenders don’t need any credit checks and minimal documentation. This is because the hard money lender has the flexibility to weigh the property itself and determine the value of the asset. This is because the borrower is not purchasing the property but rather gaining access to it.
Flexibility and Versatility
Hard money loans give you the flexibility and versatility to use the funds for almost anything. Hard money loans are an excellent solution if you need cash. The process can be completed in a few days. You can use the money to buy real estate or fund a fix and flip project.
There are many financing options available. This loan flexibility is another benefit to hard money loans. For example, if you are not able to secure a traditional bank loan, a hard money loan may be your only option. Homeowners can usually access their funds much more than through traditional bank loans, which means they can deal with emergencies, such as sudden medical expenses.
Convenience
Lenders who work with hard money loans are not subject to the same lending standards as banks and other regulated financial institutions. As a result, they can offer loans to borrowers who do not qualify for traditional loans. In some cases where traditional lending is not available, hard money loans can be a real benefit to the borrower.
The idea here is that hard money lenders are more convenient to deal with than banks. This can be especially important when it comes to short-term lending. Banks can be rigid and slow to act, while a hard money lender can more respond to a borrower’s needs.
Take Away
Hard money loans are a viable option for investors. These loans can be ideal for professionals and foreign nationals, as they allow you to borrow against the equity in your home, or from the relative equity that you have created. This loan type can also work for many entrepreneurs who may lack the credit needed to get a traditional business loan.
These loans are short-term loans secured by real estate. These loans are usually carried at higher interest rates than prime mortgage loans because of the greater risk associated with them. Contact us today at Charlotte NC hard money lenders to find out your options!
