Hard Money 101: What You Need to Know

There are many types of financing out there and many different financial options available to you if you need capital. One loan type you should know about is …

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There are many types of financing out there and many different financial options available to you if you need capital. One loan type you should know about is known as a hard money loan, which is essentially a short-term loan that is secured by a piece of real estate. As hard money lenders San Francisco, we generally provide hard money loans with terms that last anywhere from one year to five years.

When to Acquire a Hard Money Loan

Not all deals can benefit from a hard money loan. In most cases, we recommend using conventional financing if you have good credit, a solid income history, and you do not have a foreclosure or short sale on your record. However, as hard money lenders Los Angeles, we recommend hard money loans in cases where a loan is needed quickly and working with a standard financial institution is not an option.

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Hard money loans can also prove to be a beneficial form of financing for the following projects:

  • Construction loans
  • Land loans
  • Home flips

So, whether you need to act quickly on a piece of prime real estate or you have credit issues, a hard money loan may be your best option.

Borrower Requirements

Most hard money loans are secured based on the amount of equity already invested in a property that can be used as collateral. Since so much focus is placed on this aspect of the deal, the credit rating of the borrower is less important. In many cases, a short sale or a foreclosure on a borrower’s record can even be overlooked if enough capital exists to over the interest on the loan.

Get Started Today

At North Coast Financial, we’d be happy to give you further information about hard money loans and if this form of financing is right for you. Give us a call today to speak with one of our representatives.

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