North Coast Financial, Inc. are San Diego, California hard money lenders. They specialize in fix and flip loans, hard money purchase loans, constructions loans, cash outs and other various hard money bridge loans. They have over 30 years of experience in hard money lending. Loan requests are approved very quickly and funding can be completed with a week.
The Advantages of Using Hard Money Loans
While the cost of hard money loans is higher than a conventional bank loan, the advantages of a hard money loan outweigh this additional expense. Hard money lenders can approve and fund a loan in a fraction of the time it would take a bank. Real estate investors often turn to hard money lenders when they are presented an opportunity to purchase a property at a bargain, but only have a short amount of time to complete the sale. A typical example of this would be a foreclosure, short sale or situation where a faster closing time would beat out competing offers.
Hard money lenders are primarily focused on the value of the property being borrowed against and the loan to value ratio. This means that borrowers with recent credit issues can still be approved for a loan by a hard money lender when the bank has turned them away.
Who Should Use a Hard Money Lender?
A homeowner looking to purchase a primary residence typically would not use a hard money lender unless the bank has denied their loan request. A bank may turn the borrower away due low credit scores, lack of sufficient income history or recent short sales or foreclosures. A hard money lender can overlook any of these issues with a reasonable loan to value ratio and if the borrower has the ability to repay the loan. The hard money purchase loan can help the borrower get into the property and then have time to fix any credit and income history issues. At a later time the borrower may be able to refinance at a lower rate with a conventional bank loan.
Hard money loans are generally geared toward real estate investors looking to quickly purchase properties, improve them and then either sell them or refinance if they wish to hold them long term. Hard money is routinely used for fix and flip loans and construction loans. This is because hard money lenders can act so much quicker than a bank and are much more flexible.
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