You have probably noticed that in recent years traditional bank loans have become hard to access. With higher rates of people receiving bad credit, big banks are not willing to risk their cash. Lucky enough, real estate investors and homeowners can still get loans from non-institutional lenders. Hard money lending is one of the most popular options for those who do not qualify for traditional financing.
If you have tried applying for loans through traditional lenders like banks, it can take longer to get a response from the institution. It is worse when it takes that long, and your loan ends up being rejected. Non-conventional financing, on the other hand, does not have all the requirements banks will need. The process is pretty simple, and funds are available within a short period of filling out a standard application form.
The real estate sector is becoming weary of financing through bank loans. Many property sellers have had their prospective buyers pull out of the deal just because their respective banks pulled financing from the buyers. This not only puts the deal in jeopardy but also kills it altogether. In the case of non-institutional lenders, they are not known to pull funding for subjective reasons.
During loan approvals, banks basically consider the credit score and income of borrowers. For borrowers who do not have a clear income history, getting loans from those institutions can be very difficult. It is even worse when your credit score is not perfect. Instead of struggling to keep up with these conditions, non-institutional lenders can provide the much-needed financial support to keep you going.
If you have applied for funding from banks, perfect credit scores and income history are the most important things the institutions look at. If your loan application has been rejected multiple times, it means either of the two or both factors is outside the criteria of the bank. Lucky enough, non-institutional lenders do not look at credit scores or income history to provide loans.
In the case of hard-money lenders, the value of the property is what matters most. This is because the property serves as the collateral for the loan. It also serves as the down payment for the property. This means the lender must be at peace with the equity and valuation of the property. This is what makes them not get concerned about the credit scores or income history of borrowers.
Sufficient cash is a great thing when investing in the real estate sector. This is especially when buying multiple properties. To begin with, more of your offers will be accepted at highly competitive prices. This is because the seller is sure of closing the deal as soon as possible. Further still, all-cash auctions often have good offers but require cash.
Hard-money lenders focus on the asset being bought. Therefore, when your record is recently tainted with issues relating to bankruptcies, foreclosures or loan modifications, the lenders will still give you a loan as long as the asset is worth the risk. Banks and other traditional institutions will, unfortunately, classify the application as a non-conforming loan.
If you have tried applying for loans through traditional lenders like banks, it can take longer to get a response from the institution. It is worse when it takes that long, and your loan ends up being rejected. Non-conventional financing, on the other hand, does not have all the requirements banks will need. The process is pretty simple, and funds are available within a short period of filling out a standard application form.
The real estate sector is becoming weary of financing through bank loans. Many property sellers have had their prospective buyers pull out of the deal just because their respective banks pulled financing from the buyers. This not only puts the deal in jeopardy but also kills it altogether. In the case of non-institutional lenders, they are not known to pull funding for subjective reasons.
During loan approvals, banks basically consider the credit score and income of borrowers. For borrowers who do not have a clear income history, getting loans from those institutions can be very difficult. It is even worse when your credit score is not perfect. Instead of struggling to keep up with these conditions, non-institutional lenders can provide the much-needed financial support to keep you going.
If you have applied for funding from banks, perfect credit scores and income history are the most important things the institutions look at. If your loan application has been rejected multiple times, it means either of the two or both factors is outside the criteria of the bank. Lucky enough, non-institutional lenders do not look at credit scores or income history to provide loans.
In the case of hard-money lenders, the value of the property is what matters most. This is because the property serves as the collateral for the loan. It also serves as the down payment for the property. This means the lender must be at peace with the equity and valuation of the property. This is what makes them not get concerned about the credit scores or income history of borrowers.
Sufficient cash is a great thing when investing in the real estate sector. This is especially when buying multiple properties. To begin with, more of your offers will be accepted at highly competitive prices. This is because the seller is sure of closing the deal as soon as possible. Further still, all-cash auctions often have good offers but require cash.
Hard-money lenders focus on the asset being bought. Therefore, when your record is recently tainted with issues relating to bankruptcies, foreclosures or loan modifications, the lenders will still give you a loan as long as the asset is worth the risk. Banks and other traditional institutions will, unfortunately, classify the application as a non-conforming loan.
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