Hard Money Mortgage Lenders
Hard money mortgage lenders provide financing for those who, for whatever reason, cannot or do not wish to obtain finance through traditional channels such as banks and mortgage lending companies. There can be many reasons why someone may not want to go to a traditional lender for mortgage finance including those with credit problems those who have immediate foreclosure issues or maybe just cannot obtain a loan through traditional channels because they do not meet the strict criteria. Due to the nature and risk factor involved with hard money lending the interest rates and fees, can be quite high; interest rates at 10%-15% are common. For hard money mortgage lenders this is slightly less so because their risk is directly proportional to the fast-sale-value of a property, and they will typically only extend their risk to roughly 70% of this value.
The actual lenders are private investors or investment groups, whose own personal finances are used when funding hard money mortgages. The hard money mortgage lender can offer all kinds of solutions to people with mortgage financing problems; the only difficulty most borrowers face is finding them. Most are available online, although searching for them through Google can be a real chore.
Why A Hard Money Mortgage Loan
There are many reasons why a person might want to take out their hard money mortgage loan. These types of loans can satisfy a range of mortgage needs including;
- People with bad credit can easily be offered a hard money mortgage loan because their credit rating is not taken into account when issuing these loans.
- Homeowners facing foreclosure who need a cash injection to either completely refinance, or allow a short-term breathing space in which a property can be sold thus preventing a loss-inducing foreclosure.
- Those who suffer job losses and are unable to make mortgage repayments can take out a hard money mortgage, replace their old mortgage use the excess to pay their debts to date, and give them time to balance their finances until they achieve re-employment.
- Homeowners might wish to take out a loan to allow them to develop or modify their property to increase its value, during which time a regular mortgage can be arranged to coincide with the completion of the work.
There are numerous reasons why a borrower might want to take out a hard money mortgage loan because the rules are not fixed and all kinds of agreements can be reached. One of the great things about these types of mortgage loans is that money is usually available to the borrower very quickly.