Who Can Apply for a Hard Money Loan?

//Who Can Apply for a Hard Money Loan?
  • Who Can Apply for a Hard Money Loan - Paces Funding Atlanta

Who Can Apply for a Hard Money Loan?

 

When setting out to buy a piece of property, whether commercial or residential, one of the most important steps in the process is to acquire a loan. While there are many different types of loans to choose from, a hard money loan is one that has several distinct advantages and that therefore is worth considering. This is particularly true for individuals who are interested in acquiring their loan money quickly or those who do not have a good enough credit score to secure a traditional loan.

In a hard money loan, credit score is not as big a factor as it is with a conventional loan. That’s because the lender uses collateral, not credit, against the loan. In most cases, the collateral is simply the piece of property that the borrower is seeking to obtain. Typically, the lender will loan somewhere between sixty to seventy percent of the value of the property, and the borrower is responsible for supplying the other thirty to forty percent as a down payment on his or her purchase. In cases where the buyer does not have this amount of cash to make a down payment, the lender will place a lien on another property owned by the borrower as an additional form of collateral.

Hard money loans are also commonly used when the individuals purchasing a piece of property are doing so with the intention of flipping it. In these cases, having quick access to cash allows the buyer to get started on their work of flipping more quickly, and thus cuts back on the amount of time they invest in the property. In a world where time is money, taking on the higher interest rate involved in a hard money loan is a worthwhile investment, as the buyer does not intend to own the property for a lengthy period of time.

Do You Need a Hard Money Loan to Buy an Investment Property in Atlanta?

If you’re looking for a hard money loan in Atlanta, we may be able to help you.

Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.

Read our frequently asked questions and take a few minutes to learn about the hard money loan process.

 

By |2017-06-24T23:31:01+00:00June 24th, 2017|Categories: Hard Money|Tags: |0 Comments

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