Hard money loans are basically a specific asset based loans wherein the borrower get funds and is 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. Compared to traditional lenders however, the rate of interest is higher in such loan.
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. Hard money on the other hand is referred to not just asset based loan but potentially, distressed financial situation similar to 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 – commercial banks are one type of lender you can turn to in the event that you badly need money. 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. What these hard money lenders do is lend cash needed to purchase a property. If ever that you’ve decided to push through and get money from mortgage bank, make sure to not use this as a long term solution. The terms oftentimes are short and you will have to come up with a balloon payment at the end of the term.
Number 3. Mortgage brokers – another popular type of hard money lenders you may try is mortgage broker. They actually have countless of lending sources that may be used to get the best deal possible. With such kind of broker, you can secure money you need in buying a property.
Number 4. Finance companies – there are numerous finance companies that also double as hard money lenders. Regardless of the project that you need funding for, such finance companies can provide you the funds you need for it.
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.