Hard money loans are a specific type of asset-based loans where a borrower is funded and secured by the value of a parcel of real estate. Hard money loans are usually issued by individuals/investors or companies. Interest rates are typically higher than conventional lenders. Most loans are typically used for projects that last from a few months to a few years. It is similar to a bridging loan, which has similar criteria for lending as well as cost to borrowers. The main difference is that a bridge loan refers to a property that is commercial or may be in transition and does not yet qualify for traditional financing, on the other hand, hard money often refers to not just an asset-based loan, but possibly to a distressed loan. financial situation, such as arrears on the existing mortgage, or when bankruptcy and foreclosure proceedings have occurred.
If you need a loan, there are many different types you could consider. Here are some of the different types of lenders.
1. Commercial Banks
One type of lender you might consider is commercial banks. These types of banks are going to offer different loan programs. If you have a traditional business, you could get a big loan from this type of establishment to expand your business.
2. Mortgage Banks
If you need mortgage loans, you may want to check with a mortgage bank. These hard money lenders can provide the money you need to purchase property. When you get a hard money mortgage from a mortgage bank, you’re not going to use this as a long-term solution. Typically, the terms are very short and you will have to make a balloon payment at the end of the mortgage term.
3. Mortgage brokers
Another type you may want to consider is a mortgage broker. They have a variety of different loan sources that can be used to get you the best possible deal. With that type of broker, you will be able to secure the money you need to purchase a property.
4. Financial companies
There are numerous different finance companies that also offer hard money loans. These finance companies can provide you with the money you need for almost any project.
5. Online loan companies
One of the best and easiest options that you can check out is the online loan company. There are many different lenders doing business online. With the ability to work with lenders online, you will be able to conduct business from the comfort of your home. You’ll also be able to shop around very easily and make sure you get the best deal. When searching online, be sure to find a lender that does business in your geographic area. Many lenders are licensed to do business only in certain states, and you don’t want to start the process if they can’t finish it.