How hard money lenders can help you during COVID-19

How hard money lenders can help you during COVID-19

How hard money lenders can help you during COVID-19

Even with all the reopening of cities across America, some households may find themselves stranded trying to escape the setbacks caused by COVID-19. If you find yourself falling into this category, you may be looking at all the different options to get a little extra cash now, especially when dealing with real estate matters. Have you thought about what a tough loan shark could do for you?

What is hard lending?

Hard money lending is a form of asset-based financing. The funds that the borrower receives are secured by the property’s equity value. Interest rates are higher on hard money loans compared to loans that are secured by a financial institution. This type of loan is financed by private individuals who are secured by bonds to private investors.

It works the same as any other loan. You continue to pay monthly principal and interest on the amount you borrowed. You will have a repayment term to meet, just like any traditional loan.

Facts about hard money loans

Here are some of the traits that are indicative of hard money loans:

  • These loans are secured by a broker
  • Housing and commercial loans
  • Announced loans
  • Terms can vary from 11 months to 5 years
  • 1St2n.dand 3rd position of all properties
  • No withdrawal limits
  • Past bankruptcies, short sales and foreclosures are fine
  • Amortized and interest only programs
  • loans can be approved within six to 24 hours

Getting approved for a loan

This type of loan requires you to have equity in the property. Once the lender looks at the equity of the property, then they will begin the normal lending process. The amount you borrow will be determined by the amount of equity, ability to repay, debt ratio and your long-term goals for the property.

Your lender should advise you on all the fine details of the agreement such as interest rate, prepayment penalty, terms, costs, title issues, among other important loan details.

Check with a local lender to find out what your options are and how a hard money loan can help with your COVID-19 woes.

How a hard money loan can help during COVID-19

If you have a property with equity, you may be able to use it to get a loan. During COVID-19, especially when it was at its peak, you may have had trouble processing all of your accounts. If you’re struggling to get a loan and need some extra cash to help you get by during this pandemic, you may want to look into loans and see if you qualify.

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