Hard Money personal loans to cover or consolidate personal debt obligations are usually for relatively short periods. Personal loans from hard money lenders might be used for property needs, maintenance or repairs. When a hard money lenders transfers funds to the borrowers, and as these are secured loans, the borrow must provide something of nearly equal value to use as collateral for the loan. A borrower currently holding a house or something of particularly high value should to be secure a personal hard money loan for negotiable term of somewhere between 8% and 16 %, however higher rates are also possible.
Hard money personal loans are of two types:-
- Secured hard money personal loans:
- Unsecured hard money personal loans:
Loans that can be availed without depositing any security. As these loans involve great risks
they are not preferred by the lenders.
If you are in urgent need of money to complete a project that a traditional lender will not lend on, then why not take advantage of a hard money personal loan. This type of loan may also be suitable for those in default on mortgage payments or facing bankruptcy or foreclosure. However, due to high interest rates and fees this type of loan is best seen as a temporary solution to your financial crisis. There question arise how an individual is applicable for the hard money laon, Below are some points for that.
· An individual having a bad credit score.
· Those persons having no credit status.
· Defaulted earlier.
· No income proofs and the stable income proof is available
· Those, who need immediate refinance.
· Those in need of short-term money.
· Those, who do not have a complete set of required documents
· As it is easier to qualify for this loan, people prefer opting for it, even though the rate of interest is high.
The some advantages of hard money personal loans are as under:
· Provides a large amount
· Terms are negotiable
· Easy documentation
· Fast processing
· Speedy and a less tedious procedure
Some disadvantages also there:
· High interest rates
· Hidden charges
· Rarely available
Hard money personal loan is practiced, since there were not many banks and financial institutions available to the common person. Even after knowing all the disadvantages, it is highly preferred by the borrowers, as the process is faster as compared to other loans provided by banks and financial institutions.