January 3, 2019
When you are in need of funding, whether it be for a home renovation, a business venture, or other circumstance, there are decisions you have to make about where to secure that funding from. Hard money loans, or private money loans, are short term loans that investors can sequre quickly using some form of collateral. There are different scenarios where this type of loan would be beneficial, such as a real estate investment property, a property flip scenario, or a construction loan. Let’s look at three reasons why hard money loans can be a great solution for some.
Secure Funding Quickly
The biggest benefit of a hard money loan is that it does not take long to secure. In an investment property scenario timing can mean the difference between getting the deal and not getting the deal. For investors who purchase homes to renovate and sell, a hard money loan is a perfect solution. The loan allows them to move quickly on the property, secure funding for renovations, and then sell the property before the loan term ends.
Short Loan Term
The shorter term of a hard money loan is great for smaller loans such as home renovation loans, and also for investors who don’t intend to keep the property for long. For homeowners who are looking to renovate, a hard money loan could be a good option if they don’t wish to adjust their mortgage long term with a home equity loan. Likewise, builders who are flipping a house will not want to get caught in a 15 or 30 year loan if they plan to sell the house following completion of their project.
Good for Poor Credit
Hard money loans are also a good option for those with less than perfect credit. Because the loan is backed by home equity, lenders are more lenient in loaning money to those with poor credit or limited income history. For those who have been denied conventional loans a hard money loan can be a great solution.
Hard money loans, or private money loans, can be a great option for some people, depending on their needs and situation. If you are in need of a loan for an upcoming investment property, or you’ve been denied a conventional loan in the past, give us at Maryland Private Mortgage a call today. We’d love to go over any questions you may have about hard money loans in Maryland and help you find the best solution for you. Give us a call to get started today!
The Maryland Private Mortgage Lending Team