The term “hard money loan” refers to a private, nonbank property-secured loan. Our hard money loans are usually short-term are typically used to purchase various types of real estate including rental and investment properties.
Hard money loans can be a solution for individuals who need to be financed quickly but are not eligible for a traditional loan due to unverifiable income or lack of documentation. Our loans are backed by equity and have a comparatively low Loan-to-Value (LTV) ratio.
To qualify for a hard money loan, all you usually need to have is the down payment or property equity to act as collateral. Unlike conventional loans, hard money loans require:
No Minimum Credit Score | Minimum Documentation | No Income Statement
Using hard money loans is a common financial strategy with “property flippers” — people who buy real estate to renovate and resell it for a higher price. They often buy properties that cannot be financed traditionally since the homes are in such bad condition. After repairing the house, the profit margin should offset the loan costs and leave a sizable payday for the borrower.
Borrowers who have low credit scores but considerable equity in a property can also use hard money lenders to cash out on their equity and use the cash for other projects.