Credit Score

Your Credit and a Hard Money Loan

Sure, credit matters.

But there are many good people who have terrible credit scores (and vice-versa).

What that means is that those good people are often ignored by lenders, and in many cases, the reasons behind their poor credit are far beyond their control.

So what happens if someone with bad credit wants to get a rehab loan?
Bad Credit and Rehab Loans in Atlanta
When someone with bad credit attempts to get a rehab loan through a traditional lender, the lender may not even look at his or her circumstances. In those cases, turning to an Atlanta hard money lender is typically the best option.

Why?

Because a hard money lender, even if they check your credit, is really looking at the most important factor: the value of the house.

In many cases, a hard money lender is able to fund a loan when the applicant has poor or less-than-perfect credit because what really matters is how much the property is worth. Remember, in a hard money loan, the property serves as collateral.
Should You Apply for a Hard Money Loan With Bad Credit?
Don’t let your credit score stop you from applying for a hard money loan. In fact, we may be able to help you if traditional lenders have turned you down. While bad credit can be a challenge, you can overcome it.
Do You Meet Our Loan Criteria?
If you’re thinking about applying for a hard money loan through Paces Funding, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take […]

Does Credit Matter With a Hard Money Loan?

Many people wonder whether they can get a hard money loan with less-than-perfect credit. While credit scores are a major factor in loans from traditional banks, they’re not nearly as important with hard money loans.
Does Credit Matter With a Hard Money Loan?
Hard money lenders follow different criteria when they underwrite loans. Naturally, credit scores do matter – but only to a certain extent.

In most cases, the after-repaired value of a property is more important, as is your willingness to invest your own money into a project and your history with real estate investing.

Good credit can certainly help you get a hard money loan, but bad credit won’t ruin your chances of getting the financing you need. Typically, hard money lenders look at the “big picture” instead of relying on the one factor traditional banks look at the most.
What if You Have Bad Credit?
Even if you have less-than-perfect credit, you can take steps to improve your chances of approval on a hard money loan. Because hard money lenders can dedicate one-on-one attention to your application, in many cases, simply being able to explain your credit problems can go a long way.

Being willing to contribute your own money to the project shows that you’re serious about its success, and so does having a solid exit strategy that shows the lender you’ll be able to make your monthly payments and the final payoff when that date arrives.
Do You Need a Hard Money Loan With a Checkered Credit History?
If you need to obtain financing for your real estate project, call us at 404-814-1644 or get in touch with us online. We’ll be happy to discuss your situation and answer your questions about hard money lending.

  • How Does Your Credit Score Affect Your Ability to Get a Loan - Paces Funding Atlanta
    Permalink Gallery

    How Does Your Credit Score Affect Your Ability to Get a Loan?

How Does Your Credit Score Affect Your Ability to Get a Loan?

You already know that your credit score is important. It’s what lenders use to determine whether you’re trustworthy enough for them to take a financial gamble on you – and it’s what could make or break your next real estate investment.

Sure, your credit score is a general indicator of your fiscal health. But it’s not the only thing that matters… unless you’re dealing with a big bank or major lender.
Does Credit Matter with a Hard Money Loan?
Credit does matter with a hard money loan, but not to the extent you might expect. We don’t have a minimum credit score requirement. We base our loans on your ability to repay it, your investment in (and the cost of) the property, and the after repair value, or ARV on the property.
What’s a Good Credit Score for a Bank?
If you’re purchasing a house and you’re using traditional financing, your lender will probably prefer your credit score to be at least in the mid-600s. With that type of score, you’re not going to qualify for the best rates. Even with a score of 700 or higher, you may not qualify for very favorable terms.
What Affects Your Credit Score?
Most people already know that late payments, bankruptcies and foreclosures will negatively impact their credit reports, but if your credit is close to dipping below the minimum that a lender will accept, you need to know that several other factors will affect it as well. Those factors include:

High balances on your credit cards
Hard inquiries on your credit report
Credit that’s too new
Opening new credit accounts
Lack of established credit

How Can I Check My Credit?
Thanks to the Federal Trade Commission, everyone is entitled to one free copy of his or her credit report each […]

Introducing Paces Funding

Paces Funding is Atlanta’s largest hard money lender. We are leading the way with innovative financing solutions for real estate investors. Our staff has processed over 1,000 loans over the past decade and is excited about the new opportunities we will be providing our clients. Over the next six months, Paces Funding will be introducing new real estate financing and investment opportunities.

Contact us today to get pre-approved for a hard money loan.