NMLS #: 1202436 BRE #: 01954763
Home / Hard Money Blogs / Hard Money Mortgage

Hard Money Mortgage


Hard Money Mortgage

Borrowing from a hard money mortgage can be a scary deal to get into, but it can undeniably be beneficial to someone in the right conditions. A hard money loan is a type of asset-based loan through which a client borrows money protected by the value of a real estate property.

Hard money loans primarily fund a loan based on the amount that the property is worth. These kinds of loans tend to work in short periods of time (1-3years), high interest 8-12 percent and normally stay between 50 to 70 percent loan to value. The high interest percentage comes due to the high-risk that lenders deal with when lending to someone with minimal information.

There are several types of hard money loans, common ones include: mortgage refinancing, equity loans, and bridge loans. Mortgage Refinancing pays off one or multiple loans that are protected by a property. It can result in a new loan, generally with a larger starting value than the first loan. Equity loans tend to fund quicker due to that they are secondary to an existing mortgage. A bridge loan is a money quantity loaned by a hard moneylender to cover a gap between two transactions. Sellers who want to buy a new home, but need the cash from a primary property before making the deal use this kind of loan.

Why would a person petition for a loan with such high interest? Hard money loans are often called ‘last-resort loans.’ Several reasons can cause individuals to depend on hard money. An individual may not be able to receive a conventional loan due to bad credit, lack of filed paperwork, they may not have documented their taxes, a primary home may not be paid off, etc. Hard money mortgage may not be cheap, but they can make a bad situation better and sometimes they may be the only choice that is available to a borrower.

Recent Posts

Leave a Comment

You must be logged in to post a comment
Contact Us

We're not around right now. But you can send us an email and we'll get back to you, asap.

Visit Our Facebook PageVisit Our Facebook PageVisit Our Facebook PageVisit Our Facebook Page