Interest rates on hard money loans vary based on the type of loan, the type of property, and the verification of your application information. 

If you have any concerns regarding our business funding process, feel free to contact us. Or, to begin a funding application, and explore rates follow the “Get Funding Now” to get started.

Hard money loans are a great way to get the cash you need when traditional lending options are not available. If you’re looking for a loan that can be funded in as little as one week, a hard money loan may be right for you.

A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. These loans are often made to borrowers who do not qualify for traditional bank financing, such as people with poor credit or those looking to avoid property taxes.

Hard money loans are most commonly used for real estate transactions and other assets that would typically be considered high-value, such as personal property.

Hard money lenders use the value of the underlying asset as collateral, rather than an applicant’s credit score, to determine whether they’ll be able to repay the loan.

Why do people take out hard money loans?

Hard money loans are used to finance real estate transactions, such as the purchase of investment properties or a refinance. If you are looking to buy a house or investment property in an area where there is already high demand and low inventory, then it’s likely that you will not be able to get traditional financing from a bank or credit union.

If you are looking to buy a house or investment property in an area where there is already high demand and low inventory, then it’s likely that you will not be able to get traditional financing from a bank or credit union. A bank won’t give you money for something they can’t sell, so instead, they will require that you pay the entire balance upfront before giving any loans. This creates a situation where you’ll have to take out hard money loans from private lenders. 

Hard money loans are most commonly used for real estate transactions and other assets that would typically be considered high-value, such as personal property.

Hard money loans are usually short-term bridge financing to buy an asset, renovate it, and then sell it at a profit. The lender makes their profit from interest paid by the borrower on the loan amount borrowed. This can be beneficial for both parties involved because hard money lenders are often willing to provide quick funding without having to go through a lengthy underwriting process like traditional banks do when approving loans.

A hard money loan is a short-term loan secured by real property. In contrast to traditional bank lending, a hard money lender provides financing to borrowers that have poor or little credit history and/or who are unable to meet the stringent underwriting requirements of most traditional lenders.

Generally, from an investor’s perspective, there are two types of loans. 

Traditional and Hard Money Loans. Traditional lenders include banks and mortgage companies that offer solutions for borrowers that meet their lending criteria. Hard money loans are a bit different than traditional financing options because they tend to be more expensive but can also be approved much faster. Hard money lenders provide funding without regard for credit scores or collateral (e.g., property). They are able to make these decisions because they have the ability to take possession of the property if you fail to pay them back in a timely manner. The primary benefit of this type of loan is that it eliminates any delays caused by traditional underwriting processes; however, there are drawbacks as well such as higher interest rates and added closing costs associated with hard money loans.”

Borrowers often take out hard money loans because they need quick cash or are unable to get traditional financing. They can be used for a variety of purposes including debt consolidation, purchase of real estate investments, fixing up properties that need repair, and more!