Thursday, 26 April 2012

Common Questions about hard Money

Questions about hard money loansDeveloping 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.

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.

faq about hard money loanIf you want to know more about Hard Money Loans or interested to get loans, do contact us at:

Call Us: 415 680 3454

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