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» When is hard money the right loan?
Posted on 8/15/2005
Posted in Miscellaneous
Hard money loans are a reasonable alternative to conventional bank loan in certain circumstances. When should you consider a hard money loan for real estate purchase or refi?
- If your credit score is too low to meet conventional bank requirements to obtain a mortgage, consider private alternatives, known as hard money loans
- If the property does not meet conventional lender requirements for a mortgage, consider a hard money bridge loan. An example of such a property might be an apartment or office building that does not have an occupancy permit.
- If your purchase or refinance needs to be completed in a matter of days or weeks, consider a private lender, as conventional lenders regularly require several months to complete due diligence and fund a commercial loan.
Hard money commercial bridge loans are designed to bridge the gap from whatever circumstance exists today and a future date, usually not exceeding 36 months' time, when you will be able to refinance conventionally or take out the bridge loan in some other way. Plan ahead. Hard money lenders will want to know your exit strategy for their loan before funding.
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