Developing viable hard-money loan options may make it
possible for mortgage brokers to close more loans in this challenging
environment. Hard-money loans can seem difficult for many reasons, however.
Brokers who haven’t worked with hard-money lenders before may have some
misconceptions about this type of financing and question whether they are a
viable funding source.
Below are
some of the most frequently asked questions we get about hard money loans.
Q-1 what is hard Money Loan?
Ans- HardMoney Loan is the term that has used to describe a loan made on the raw equity
of real property. In other words, hard money loans are made with the assumption
that the liquidation of the property will be the primary means of loan
repayment in the event of default.
Q-2 Can you use Hard Money forloans on commercial and residential property?
Ans- Yes
you can! Hard Money can be used for any type real estate, single family homes,
land, apartments, industrial buildings, office buildings, and retail stores.
The
procedures of doing the loans are similar but the concepts regarding the value
and equity vary significantly between commercial and residential property.
Q-3 how long is the loan for?
Ans- Typically write the notes from 3 months to 12 months depending on the Lender and your needs. Longer the term can lead to increased costs or interest rate.
Ans- Typically write the notes from 3 months to 12 months depending on the Lender and your needs. Longer the term can lead to increased costs or interest rate.
Q-4What is the
process for Hard Money Loans?
Ans-Hard Money Loans provide Investors access to
capital to purchase investment properties. They can fund quickly, typically
within 72 hours of receiving the final docs from the Title Company. Hard Money
is available for adequately collateralized loans on single-family residential
houses and other Real Property including commercial projects.
Q-5 can
interest to be deferred to the end of the loan?
Ans-Sometimes Most have interest payable monthly. Again, if you cannot afford to close you typically cannot afford to take out this type of loan.
Ans-Sometimes Most have interest payable monthly. Again, if you cannot afford to close you typically cannot afford to take out this type of loan.
If you want
to know more about Hard Money Loans or interested to get loans, do contact us
at: http://www.equitycoalition.com/contact/
Email: loans@equitycoalition.com
Call Us: 415 680 3454
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