Residential Hard Money Loans
Residential hard money loans are a way for investors to enter the real estate market. Alternative financing programs dealing in hard money are a very effective way for investors to quickly purchase a prospective piece of property. A hard money loan is simply a non conforming loan that is backed by a hard asset (real estate). Hare are some examples of why someone would consider a residential hard money loan:
- The borrower has the opportunity to purchase a property under market value, but the seller is looking to close escrow within 30 days. Typically, funding for hard money loans are processed in less than 30 days.
- The loan has matured and lender refuses to rewrite loan. First trust deed holder may be willing to discount his note or carry back a second trust deed to accommodate refinancing of the property. Borrower avoids possible foreclosure and credit rating problems.
- The borrower is not eligible for a conventional bank loan but is in need for a short term “bridge loan”. He plans to refinance his loan at a later date after he has an opportunity to rehab the property or improve his credit rating.
- The borrower is purchasing a property and the seller is willing to carry back a second trust deed as part of the down payment. Hard money financing will allow the second trust deed to be behind their first trust deed.
For more information about residential hard money loans, contact the specialists at HML Investments today for more information.