Commercial Hard Money Loans For Bad Credit
There are qualifiers to getting private money, but credit is not one of them. The ideal borrower would have pristine credit and sufficient equity to take a loan from a conventional lender. In the case for alternative financing programs, private lenders look for attributes outside the scope of just credit. Whether you are an investor or a business owner, commercial hard money loans for bad credit are available to meet the needs of those looking for an alternative source of financing for their commercial real estate ventures.
Although there may be better rates available for conventional loans, private money loans such as hard money and stated income loans are concerned with down payment and loan to value. Borrowers of hard money loans are looking at a down payment ranging from 20-35% with a loan to value (LTV) of up to 70%. Loan to value is simply defined as the ration of the value of the loan compared to the current market value of the property being financed. Private money lenders dealing in hard money are mainly concerned with the value of the property, since it will be used as collateral against the loan. Those with more collateral are more attractive and are also eligible to receive greater loan amounts.
For anyone looking to obtain private money such as hard money, it is a good idea to establish some credibility with the private lender before going through the loan process. Be willing to leverage any available investment properties as well as have a down payment available to meet the needs of both the lender and yourself. Just remember, private lenders deal in limiting risk, and so should you. Be wise and weigh the benefits against the costs involved with private money (hard money) before closing a deal.
Contact the specialists at HML Investments today for more information about commercial hard money loans for bad credit.