Does Credit Matter With a Hard Money Loan?

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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.

By |2015-12-18T10:00:20+00:00December 18th, 2015|Categories: Credit Score, Hard Money|0 Comments

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