There are a number of reasons an investor may choose to use a hard money loan instead of a conventional mortgage – and one of them is credit.
Is a Hard Money Mortgage the Same as a Bad Credit Mortgage?
It wouldn’t be fair to say that a hard money mortgage is the same as a bad credit mortgage. In fact, it’s like comparing apples to oranges.
Hard money loans are typically short-term financing. Most hard money loans last for 12 months or less, and some people use them to bridge the gap between selling one property and purchasing another, or between purchasing a property and transitioning to conventional financing through a bank or other lender.
Others use hard money loans to purchase properties quickly. Because this type of financing takes a relatively short amount of time to go through (typically within 10 days if there are no unusual circumstances), it enables investors to get funding before someone else snatches the property off the market.
A hard money loan can be beneficial if you don’t have perfect credit, as well. Hard money lenders look at the “big picture,” which includes far more than your credit score alone. In fact, it includes the potential value of the property, your ability to repay the loan, and your investment in the property.
Do You Need a Hard Money Loan in Atlanta or the Surrounding Communities?
If you need to take out a hard money loan, which isn’t the same thing as a bad credit mortgage, we may be able to help you – even if your credit history is a bit checkered.