Hard Money Loans – The doorway to your investment needs
Hard money loans have become the go-to for house flippers who can’t borrow money from a bank. It could be that their credit isn’t great because the deal doesn’t pass a traditional lender’s strict guidelines. The borrower’s cost of hard money, the interest rate, and the loan origination fee are higher for these reasons. The rates are higher but fixed on hard money loans, Houston to compensate the lender for the increased risk of the deal. What is a Hard Money Loan? A hard money loan is a loan backed by a ‘hard’ asset, a tangible property that produces profit to repay the loan quickly. In contrast, a traditional mortgage is secured by the value of the home and backed by the borrower’s ability to repay the loan in monthly instalments over 15 to 30 years. How are hard money loans different? There are several notable differences between hard money loans Huston and traditional loans: · Hard money loans have terms of 6 to 8 months, while traditional loans are typically