If you’re thinking about getting a hard money loan, you need to know what types of property you can get it for.
Here’s the scoop.
Property Types for Hard Money Loans
A borrower can use a hard money loan for nearly any type of property, such as:
- Single-family homes
- Multi-family homes
- Commercial properties
- Industrial properties
These types of loans aren’t appropriate for all transactions – they’re a better fit for some than they are for others. A lot of investors use hard money loans to get in on a deal quickly (if investors wait too long, someone else with cash will come by and pick up the property).
Hard money loans are typically good for situations like:
- Land loans
- Construction loans
When a buyer has credit issues, a hard money loan may be the perfect solution, too.
People use hard money loans for several different reasons, but one of the main ones is that they can be funded quickly. A standard loan from a bank or credit union can take between 30 and 45 days for funding – and sometimes, investors just don’t have that much time to spare. By contrast, hard money loans can often be funded in a matter of days (which can be the amount of time it takes your traditional lender to even get back to an email you send).
Another big reason people choose to use hard money loans is that they’ve been rejected for conventional loans. All kinds of things – sometimes having to do with credit scores – can prevent a person from qualifying for a conventional loan. Hard money can help alleviate that issue.
Are You Thinking of Getting a Hard Money Loan?
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