What is a Hard Money Loan in Nez Perce County, ID?

What is a Hard Money Loan in Nez Perce County, ID?

What is a Hard Money Loan in Nez Perce County, ID?

If your application for a mortgage has been turned down by a traditional lender, bank or credit union, you may be left with one option - a hard money loan, also known as a private money loan. Residential hard money refers to a non-bankable loan on a residential property. The lender is not a bank or financial institution, but rather an individual or company who invests money in the loan.

A hard money loan usually takes the place of a first mortgage. Your credit is not as important with a private money mortgage, as the lender will look to the property as security for the loan. Hard money lenders typically charge interest rates much higher than traditional lenders and the down payment requirement may be higher. The home will also require a careful appraisal.

Hard money loans have many advantages, and for many potential home buyers and investors, they may be the only option. Hard money lenders work with borrowers who cannot obtain financing anywhere else.

Private Money Loan Nez Perce County, ID

Reasons To Get A Hard Money Loan in Nez Perce County, ID:

  • Your credit score is not high enough for a conventional mortgage.
  • You need the money quickly. While a conventional loan closes in 30-60 days, a hard money loan can close in days. This may be important if you find a great deal that cannot wait.
  • The property does not qualify for an FHA loan or conventional loan because it requires certain renovations or repairs.
  • You need a large mortgage in a short amount of time.
  • You need a stated loan because you are self-employed or cannot prove steady, sufficient income.

Types of Hard Money Loans:

There are many types of hard money loans available, including construction loans, fix and flip loans, bridge loans, commercial loans and distressed property loans. No matter what type of project you have it mind, there is a loan type available that is customized to your needs.

Hard money loans are easier to qualify for than traditional bank loans. This means you can be approved if you are self-employed or have income that is not steady, as the loans are focused on the property, not the borrower. In most cases, hard money loans are geared toward fixer uppers, particularly homes that require major work and do not qualify for a bank loan. If you are looking for fast approval and funding, a private loan is the solution you are looking for.

Private Money Mortgage Nez Perce County, ID