Should you wish to get hard money loan, there are a few things you have to keep in mind. First is the eligibility requirement. Are you eligible for such type of loan? Can you benefit from such type of loan? A hard money loan is good for people who need urgent cash. In most instances, the money is funded within a week. It is way faster than banking institutions, as banks take around 30 to 45 days to release funding.
Who are the people that will most likely benefit from hard money loans?
- A real estate investor that wants to acquire a property but competes with numerous bids.
- A person who can’t obtain conventional loans because banks rejected the application.
- Those who have a not-so-stellar credit record, such as credit issues, foreclosures, short sales, and the likes.
- A person who does not have a significant income history to back up the loan.
- Those who want to borrow money for purposes like construction loans, land loans, and fix and flip, to name a few.
The good thing about hard money lenders is they don’t take into consideration the credit history of the borrower. Unfortunately, many borrowers have a not-so-perfect credit history. Some have a bad credit record, and we can’t blame them, as some things are uncertain in life. Although hard money lenders don’t pay attention to your credit history, they still acknowledge the fact that you are a risky borrower. That is why it warrants the borrower to secure the loan.
In other words, you need to present collateral before the loan is approved. Once you meet the eligibility requirements, the loan will be processed immediately, and in less than a week, the money will be credited to your account. That’s how quick and efficient hard money loan is.