http://www.happyinvestmentsinc.com/?p=164 – 951-221-3929-A hard money loan is a
specific type of asset-based loan financing.A hard money loan is a
specific type of asset-based loan financing through which a borrower
receives funds secured by the value of a parcel of real estate. Hard
money loans are typically issued by private investors or companies.
Interest rates are typically higher than conventional commercial or
residential property loans because of the higher risk taken by the
lender. Most hard money loans are used for projects lasting from a few
months to a few years. Hard money is similar to a bridge loan, which
usually has similar criteria for lending as well as cost to the
borrowers. The primary difference is that a bridge loan often refers to
a commercial property or investment property that may be in transition
and does not yet qualify for traditional financing, whereas hard money
often refers to not only an asset-based loan with a high interest rate,
but possibly a distressed financial situation, such as arrears on the
existing mortgage, or where bankruptcy and foreclosure proceedings are
occurring. Learn How to get Hard money loans Corona. The qualifying
criteria for a hard money loan varies widely by lender and loan purpose.
Credit scores, income and other conventional lending criteria may be
analyzed. However, most hard money lenders primarily qualify a loan
amount based on the value of the real estate being collateralized.
Typically, the biggest loan one can expect would be between 60% and 75%
of the property value. That is, if the property is worth 0,000, the
lender would advance 0,000 – 0,000 against it. This low LTV (loan
to value) provides added security for the lender, in case the borrower
does not pay and they have to foreclose on the property. through which
a borrower receives funds secured by the value of a parcel of real
estate. Hard Money Vacant Land Loans. Contact us at http://www.happyinvestmentsinc.com
Hard money loans are typically issued by private investors or companies.
Interest rates are typically higher than conventional commercial or
residential property loans because of the higher risk taken by the
lender. Most hard money loans are used for projects lasting from a few
months to a few years.
Hard money is similar to a bridge loan, which usually has similar
criteria for lending as well as cost to the borrowers. The primary
difference is that a bridge loan often refers to a commercial property
or investment property that may be in transition and does not yet
qualify for traditional financing, whereas hard money often refers to
not only an asset-based loan with a high interest rate, but possibly a
distressed financial situation, such as arrears on the existing
mortgage, or where bankruptcy and foreclosure proceedings are occurring.
Learn how to find Private Hard money loans Corona call 951-221-3929.
The qualifying criteria for a hard money loan varies widely by lender
and loan purpose. Credit scores, income and other conventional lending
criteria may be analyzed. However, most hard money lenders primarily
qualify a loan amount based on the value of the real estate being
collateralized.
In some cases, the low loan-to-values do not facilitate a loan
sufficient to pay off the existing mortgage lender, in order for the
hard money lender to be in first lien position. Because a security
interest in the property is the basis of making a hard money loan, the
lender usually always requires first lien position of the property. As
an alternative to a potential shortage of equity beneath the minimum
lender Loan To Value guidelines, many hard money lender programs will
allow a “Cross Lien” on another of the borrowers properties. The cross
collateralization of more than one property on a hard money loan
transaction, is also referred to as a “blanket mortgage”. Not all
homeowners have additional property to cross collateralize. Cross
collateralizing or blanket loans are more frequently used with investors
on Commercial Hard Money Loan programs.
Finally, hard money lenders typically lend for only very short terms,
usually between 6 and 24 months. Hard money loans should never be used
in place of a regular mortgage – such as for a rental or your primary
residence, unless you have a clearly defined exit strategy in place to
pay the loan off within the time frame allocated. Contact us today at
951-221-3929 to get Assets Based loans or private money loans in corona,
Ca 92882. http://youtu.be/sTSa5APnRBc
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