Conventional Loans vs. Hard Money Loans

As an investor, your goals are straightforward: obtain the capital you need, flip the house, and keep going. Banks are notoriously difficult to obtain loans from, which leaves you with two choices – you can attempt to get a conventional loan or you can turn to a hard money lender. What’s the difference, and which is the best for you?

What Do Conventional Lenders Look At?

A conventional lender takes the following into account when determining whether you’ll qualify for a loan:

• Your credit score, which includes a payment history, credit utilization, and length of your credit history
• Your income
• Current loans you have out
• How much you have for a down payment

What Do Hard Money Lenders Look At?

Hard money lenders, on the other hand, have a different set of criteria when it comes to giving loans:

• Your credit, which is not as important to a hard money lender as it is to a bank
• The loan to value ratio of the property, which will be used as collateral
• Your down payment
• The length of time you intend your loan to last

Hard money lending allows you to borrow as much as you need to get the job done. Even if you have poor credit, many hard money lenders are still able to make arrangements and help. What a hard money lender looks at your credit report, he or she isn’t necessarily looking at just the score; what may be even more important than the score is your ability to pay back borrowed money on time.

Do You Need a Hard Money Loan in Atlanta or the Surrounding Communities?

If you’re an investor who needs a hard money loan in or around Atlanta, we may be able to help you. Check out our loan criteria to find out whether this type of financing is right for you, and be sure to explore our hard money loan FAQs.

You can apply for a hard money loan online or you can contact us at 404-814-1644.