The term hard money has different definitions depending on the context of its use. This article is about hard money that relates to real estate. Before a consumer can know how to choose a commercial hard money lender, HMLs, wisely, he or she has to understand just what this type of money lending represents to the investor and the investee.
Since the market crashed eight years ago, lenders have become increasingly stringent in the standards that borrowers must meet to have a mortgage loan approved. Many, many people who once had excellent credit scores find themselves in the fair or poor categories. Even with a good, reliable income consumers with fair to poor credit scores will not qualify for a traditional mortgage loan.
A hard money lender, HML, is not your conventional investor. Rather, these lenders have seen an opportunity and grabbed it. An HML understands than many people with fair or even poor credit scores can still be smart and reliable buyers. This is a short term type of financing that can get started. Within a year or two, buyers will often refinance or sell the property.
The cost of a mortgage is not unreasonable. Shopping your loan around is the best way to determine a reasonable rate for your needs. In the process you will learn the difference between a local lender and a corporate lender and become a smarter consumer.
This lending can work for a consumer looking to own their home and for investors looking to flip houses. In short, you can finance the acquisition of your family home or start a new business flipping houses. Keep in mind that the length of the loan will impact the interest rate. One to three year loans cost less than a six month loan used to flip a house. Lenders may also consider the quality of the property and its location.
There are different types of HMLs. A consumer may find that a local lender is more flexible than a larger corporate one. Most important for borrowers without a good supply of ready cash, is that HMLs often do not require any down payment.
Often people are paying so much for rent that they are not able to save for that down payment typically needed to become a home owner. Check the lenders' rating with the Better Business Bureau, a get started on your road to your dream home your or dream business of flipping houses. Together, you and a local HML can make it happen.
Since the market crashed eight years ago, lenders have become increasingly stringent in the standards that borrowers must meet to have a mortgage loan approved. Many, many people who once had excellent credit scores find themselves in the fair or poor categories. Even with a good, reliable income consumers with fair to poor credit scores will not qualify for a traditional mortgage loan.
A hard money lender, HML, is not your conventional investor. Rather, these lenders have seen an opportunity and grabbed it. An HML understands than many people with fair or even poor credit scores can still be smart and reliable buyers. This is a short term type of financing that can get started. Within a year or two, buyers will often refinance or sell the property.
The cost of a mortgage is not unreasonable. Shopping your loan around is the best way to determine a reasonable rate for your needs. In the process you will learn the difference between a local lender and a corporate lender and become a smarter consumer.
This lending can work for a consumer looking to own their home and for investors looking to flip houses. In short, you can finance the acquisition of your family home or start a new business flipping houses. Keep in mind that the length of the loan will impact the interest rate. One to three year loans cost less than a six month loan used to flip a house. Lenders may also consider the quality of the property and its location.
There are different types of HMLs. A consumer may find that a local lender is more flexible than a larger corporate one. Most important for borrowers without a good supply of ready cash, is that HMLs often do not require any down payment.
Often people are paying so much for rent that they are not able to save for that down payment typically needed to become a home owner. Check the lenders' rating with the Better Business Bureau, a get started on your road to your dream home your or dream business of flipping houses. Together, you and a local HML can make it happen.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Commercial Finance Broker Company | Atlanta, GA He suggests you check out the website iFund International.
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