Which Type of Hard Money Lenders Is Best to Ask a Loan For?
Hard money loans are the specific kind of asset based loans to which the borrower receive funds and secured by value of parcel of real estate. Normally, companies or private investors or individuals are the ones issuing hard money loans. Compared to traditional lenders however, the rate of interest is higher in such loan.
Normally, most loans are being used for projects that can last for months or at times, years. Truth is, it’s almost the same to bridge loan as it carries the same criteria for lending and cost to borrowers. One major difference is that, bridge loan refers to commercial property or that may be in a transition and does not yet qualified for a traditional financing. When it comes to hard money however, it’s deemed not only as asset based loan but also, a distressed financial situation including bankruptcy, arrears on existing mortgage as well as foreclosure on proceedings occurred.
In the next paragraphs, you are going to discover some sources where you can find hard money lenders in case the time comes that you need such loans.
Number 1. Commercial banks – commercial banks are one type of lender you can turn to in the event that you badly need money. There are many lending programs that you can apply for in these banks and say that you have a traditional business setup, then you can apply for hard money loan on these financial institutions to grow your business.
Number 2. Mortgage banks – if you need mortgage loans, then you probably have to pay a visit to a mortgage bank. Such hard money lenders provide money you need in buying a property. If ever that you’ve decided to push through and get money from mortgage bank, make sure to not use this as a long term solution. Oftentimes, the terms are short and you’ll need to come up with balloon payment right at the end of your term.
Number 3. Mortgage brokers – yet another type of hard money lenders that you can try your luck are mortgage brokers. Truth is, they have wide network and lending sources that may be used to get the best deal. With the help of such lender, you can buy the property that you need or want as they can help you secure the money for it.
Number 4. Finance companies – as a matter of fact, many finance companies are also offering hard money loans. Regardless of the project that you need funding for, such finance companies can provide you the funds you need for it.
Number 5. Online lending companies – as a matter of fact, one of the best options available to you is lending companies online. Believe it or not, since it’s online, everything from the application to repayment can be done over the web, making things more convenient for the borrower.