In the present economic condition, it’s being tough to buy a property. In order to assist the borrower there are lot of financial institutions to assist them for buying a property. Hard money is generally used as bridge to allow the borrower to buy property with conventional financing guidelines or even to sell. Hard money loan is short term solution to borrow money that is minimum of one to five years, used for various purposes of real estate, commercial, retail, office, industrial, raw land, construction, land development, multi family, single family homes, and manufactured homes. There are so many reasons to get hard money and most of people prefer to go with hard money when banks charge lower interest rates and fewer fees. Some of the common reasons why a borrower would choose to use private or hard money over less expensive institutional financing, but there are various benefits included in the hard money loan.
Reasons To Choose Hard Money Loans
Speed of funding is one of the major reasons to choose hard money when compared to bank institutions. Generally banks take a minimum of 45 days to fund a residential loan, then two to three months to fund for commercial loan, and more than four months that is more than 120 days to fund a construction or development loan. Here the hard money lender gains its importance among the borrowers because they are typically funded within two weeks or before that, and even can fund quickly as 24 hours n certain cases. To meet various requirements is people choice, even suitable for physical improvements. Banks will not typically fund a loan secured by a property that requires rehabilitation prior to its use, thus the borrower will obtain hard money loan to purchase the property or sell the property. To know more about the hard money loan rates, just search online know the interest rates.