April 4, 2018
What is a Hard Money Loan, and Why Would I Need One?
Hard money loans offer a way to borrow money without worrying about your credit score or yearly income. If you have a bad credit score, chances are you’re nervous just thinking about applying for a loan. If your debt to income ratio is high, you’re a lot less likely to get approved for a loan through a traditional lender or bank.
That’s where hard money loans come in. Hard money loans are based on collateral, rather than credit score, borrowing history, or debt accumulation. Lenders are more concerned with the value of your collateral to secure the loan than they are with your financial position. This type of loan is most beneficial to those who are looking to purchase a home, fix it up, and resell it to make a profit, also known as “rehabbing.”
It’s a short-term loan that you can close on much quicker than a traditional loan. And as long as you have substantial hard assets, you’re likely to get approved.
A lot of home buyers get hard money loans and pay them back within a year or two, since the interest rates are a bit higher than regular loans. Buying a house at a low cost, fixing it up and reselling it for a much higher cost allows for easy repayment of the loan in a short amount of time
Why Choose Maryland Private Mortgage for Your Next Rehab Job?
We have over 50 years of combined experience in the hard money loan industry. In that time we’ve coached property investors, landlords, and rehabbers on how to become private placement lenders. Because we have been in the industry for so long, we have access to a wealth of resources that enable us to help as many people as possible who are in need of a quick loan.
At Maryland Private Mortgage, we specialize in primary loan underwriting, collections, and secondary marketing in addition to hard money loans. We are members of the American Association of Private Lenders, and are licensed and insured. We understand that each of our clients has personal and individual investment goals, and we are happy to provide hopeful members in our community with the financial help they need to achieve those goals.