Hard money loans are an excellent alternative to traditional loans, providing financial aid for those with little chances to get a traditional loan, as well as not much time to wait for one.
The way hard money loans work provides strong reasons for people considering getting this type of funding instead of a traditional loan. Unlike traditional lenders, hard money lenders base their financing decisions on the asset you will be purchasing with their money, using that same property as a warranty of their repayment.
For this purpose, hard money lenders don’t take much time reviewing your credit score or income available. Instead, they need to complete the funding process quickly so the borrower secures buying the property, and then, becomes committed to repaying the loan plus the interest rate.
If you are looking for hard money loans in Los Angeles, then consider contacting California Hard Money Direct and receive their funding services.
Advantages of Hard Money Loans
As stated above, the particular approach of hard money lenders offers interesting reasons to go ahead with this type of funding and dismiss going through the slow process of traditional loans.
Hard Money Loans Take Less Time
The real estate market is very competitive, to say the least, meaning that the quick availability of a hard money loan can make the difference in getting or not a valuable property. With traditional loans, the process of reviewing credit scores and income availability is considerably slow, plus there is no certainty of being approved.
More Flexible Repayments
Hard money agreements offer more flexibility as they are evaluated individually in order to help the borrower. Although the overall interest rate is higher than with traditional agreements, the repayment schedule can be extended even up to five years.
Easier to be approved
Traditional lenders take as many precautions as they can before approving a loan. They want to learn as much as they can about your current financial situation to know for sure if their money will be repaid. Therefore, traditional loans are often rejected because of even slight concerns in your credit report.
However, approval is one of the hard money loans’ biggest advantages, as lenders just need to be sure they can sell the property in question and get profits. Consequently, your financial situation is not that important for a hard money lender, as their primary focus is on your investment asset.
California Hard Money Direct is a renowned and professional option for hard money loans in Los Angeles. Get in contact with us if you are interested in getting a hard money loan, we will work hard to meet your needs.