Hard Money Loans
A hard money loan is an asset-based loan where the borrower receives funds secured by 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 the risk is higher.
This hard money loan is typically done for an investor that needs to close the loan quickly, They can close in as little time as 5 days. It can also be used to bail out a foreclosure. Most loans are One year but can go as long as Three years. In most cases credit score is not a determining factor to obtain the loan, It is based on the property and the loan is approximately 65 to 70 loan to value. Points and interest rates are higher then a typical loan.