5 Common Questions About The Hard Money Loans Process
Oct 05, 2016
Many investors are looking to take advantage of the resurgent real estate market across the United States. This increased interest has driven many investors to visit traditional banks and lending establishments in search of funding. However, strict regulations have been applied across these traditional lending channels in reaction to the recession and the sub-prime loan fiasco. With more stringent loan requirements in place, borrowers face a much tougher, longer application process. In response, investors are seeking alternative funding routes; this includes working with hard money lenders to secure a loan.
The 5 Most Asked Questions About Hard Money Loans
1. What Is A Hard Money Loan?
A hard money loan is an asset-backed loan in which the borrower can secure funds based on the value of their real estate property.
2. Does My Credit Score Matter?
There are no credit score requirements for those applying for hard money loans; borrowers are granted funds based on their hard assets (real estate).
3. How Long Is The Loan Duration?
While traditional loan duration ranges from 10-40 years, hard money loans offer much shorter loan terms. They can range from 1-5 years, with most loans usually lasting 1-2 years.
4. What Are The Interest Rates For Hard Money Loans?
Interest rates for hard money loans can range from 10-20% depending on the lender’s terms. Due to the higher risk, these rates are higher than those of traditional banks. However, the experience of Riverdale Funding in valuating loans has allowed us to offer loans starting at 11%.
5. What Properties Qualify For A Hard Money Loan?
Depending on the lender you work with, qualifying properties will differ. At Riverdale Funding, a variety of commercial properties can qualify for loans, including: five family units and higher, retail properties, industrial properties, and non-owner occupied 1-4 family properties under a corporate or LLC name.
Apply Today For A Hard Money Loan
Are you a real estate investor in need of funding? With over 35 years of mortgage and real estate experience, the loan experts at Riverdale Funding can help you get the funding you need. Get started today, and simply fill out an online application or call 888-368-4983 to speak with one of our loan experts.