Residential hard money lenders lend money to people who want to use it for a residential house. That seems obvious, but it’s a little more complex than that.

What is a Residential Hard Money Lender?

A residential hard money lender, which you usually only hear about in real estate financing, is a company that uses asset-based lending.

In this type of transaction, the lender relies on the borrower’s assets. Credit scores, payment histories and other factors may still be important – but the value of the asset is generally the driving factor that determines whether the lender can provide a loan.

The loan could be for a single-family home, a duplex, or another type of residence.

Residential Hard Money Lenders: Different from Banks

Typically, banks look at a number of factors to determine your eligibility for a loan, including:

  • Income
  • Credit scores
  • Tax returns
  • Financial statements
  • Appraisals

Residential hard money lenders may look at some of the same documents and financial information, but their primary concern is generally with the real estate asset you are borrowing against.

In order to get a good interest rate from a traditional lender, you’ll need a high credit score. While hard money loan rates vary between lenders and in different locations, they are not as dependent on a borrower’s credit scores.

Banks usually take several weeks or months to approve your transaction, which means you must wait before you can get the money. If you’ve found a great deal on a residential real estate property, you may not have long before another investor swoops in and picks it up – and a residential hard money lender will understand that you need money quickly.

Do You Need to Work with a Residential Hard Money Lender?

If you need to work with a residential hard money lender in Atlanta, we may be able to help you. Call us at 404-814-1644 or contact us through our website. We specialize in helping investors get the funding they need quickly.