Who knows the term hard money?
Hard money is private money lending, money you may receive from individuals that may loan you their cash against your real-estate, hard money lender is the bank and the bank will Loan you their money and put a lien against your property, the same with hard money lenders.
What is the difference between the hard cash lender's programs and the bank across the way?
1. Hard cash lenders can help stockholders with big loan amounts, while banks will make it awfully hard on the borrower to lend these massive amount, so that the loan would possibly end up with an insurance company to lend the money and the prerequisites are high.
2. Hard money lenders can fund any hard money loan inside a week, while for the banks it will take at least a month or even more.
3. Hard money lenders will ask for little documentation, while the banks would ask for just about everything you have, taxes, income, assets, history of the property before and plans for after the purchase, business license, fundamentally they'll definitely would like to see more from you to loan you some money.
4. Hard money lenders have suggestions but they can make exceptions without processing it through a complete underwriting team- while the bank have to go through different departments and underwriters and processors solely to make an exception, and then the exception will not get excepted.
As you see to get a hard money loan is far easier then to get a loan from a bank because of the full process, the banks are huge corporations and big companies have many different rules inside their corporations, and to get an exception for these rules is pretty much impossible, and that is the reason why many backers would rather go with a tough bank.
So now you're likely thinking what's the catch with the hard money lenders? OK, so let's rap about all of the reasons why you shouldn't consider trying for a tough cash loan:
1. Hard money banks for their services will charge you 4 to 9 points on the loan- while the banks will charge you only 1 to 2 points. Example: If you have a loan quantity of $1,000,000 and your hard bank will charge you 5 points up front then you'll pay $50,000- while the bank will charge you 2 % which is $20,000, that is a bit difference but under different circumstances for some people it's still a great deal.
2. Licensed money lenders due to the fact that they may loan you cash without showing your credit score and your revenue they will set the loans IR 9 percent-15 percent- while the banks will set your loans rate of interest to 7 percent- 10 %, again that is a massive difference if you're pondering it but for these folks that want the hard money loans it's still a great deal.
You have got to understand that most speculators or home purchasers can not qualified today with banks for any kind of Loan, hard money banks can get you the deals you would like (repos, reo's) without even thinking about showing all of the unnecessary paperwork, all you have got to have is some money in your pocket if you are buying, and if you are refinancing then you want enough equity since the hard money banks will often go up to 65 percent at the most, also to find good hard money lenders it's not so hard, it's actually very easy because there are several private hard cash lenders that are looking for real-estate properties and notes to buy so that they can make their points up frond and naturally the high interest rate, if you'll give it some thought, it's much better then put the money in the bank.
Example: If a tough bank put $1,000,000 in the bank and the bank will pay him 5 percent a year- while if he will loan the money to a speculator that wish to get a property or to refinance a property, he is going to charge his 5 points and he will get 15 % rate of interest on his money, that's a big difference. Good luck to you all financiers out there.
Hard money is private money lending, money you may receive from individuals that may loan you their cash against your real-estate, hard money lender is the bank and the bank will Loan you their money and put a lien against your property, the same with hard money lenders.
What is the difference between the hard cash lender's programs and the bank across the way?
1. Hard cash lenders can help stockholders with big loan amounts, while banks will make it awfully hard on the borrower to lend these massive amount, so that the loan would possibly end up with an insurance company to lend the money and the prerequisites are high.
2. Hard money lenders can fund any hard money loan inside a week, while for the banks it will take at least a month or even more.
3. Hard money lenders will ask for little documentation, while the banks would ask for just about everything you have, taxes, income, assets, history of the property before and plans for after the purchase, business license, fundamentally they'll definitely would like to see more from you to loan you some money.
4. Hard money lenders have suggestions but they can make exceptions without processing it through a complete underwriting team- while the bank have to go through different departments and underwriters and processors solely to make an exception, and then the exception will not get excepted.
As you see to get a hard money loan is far easier then to get a loan from a bank because of the full process, the banks are huge corporations and big companies have many different rules inside their corporations, and to get an exception for these rules is pretty much impossible, and that is the reason why many backers would rather go with a tough bank.
So now you're likely thinking what's the catch with the hard money lenders? OK, so let's rap about all of the reasons why you shouldn't consider trying for a tough cash loan:
1. Hard money banks for their services will charge you 4 to 9 points on the loan- while the banks will charge you only 1 to 2 points. Example: If you have a loan quantity of $1,000,000 and your hard bank will charge you 5 points up front then you'll pay $50,000- while the bank will charge you 2 % which is $20,000, that is a bit difference but under different circumstances for some people it's still a great deal.
2. Licensed money lenders due to the fact that they may loan you cash without showing your credit score and your revenue they will set the loans IR 9 percent-15 percent- while the banks will set your loans rate of interest to 7 percent- 10 %, again that is a massive difference if you're pondering it but for these folks that want the hard money loans it's still a great deal.
You have got to understand that most speculators or home purchasers can not qualified today with banks for any kind of Loan, hard money banks can get you the deals you would like (repos, reo's) without even thinking about showing all of the unnecessary paperwork, all you have got to have is some money in your pocket if you are buying, and if you are refinancing then you want enough equity since the hard money banks will often go up to 65 percent at the most, also to find good hard money lenders it's not so hard, it's actually very easy because there are several private hard cash lenders that are looking for real-estate properties and notes to buy so that they can make their points up frond and naturally the high interest rate, if you'll give it some thought, it's much better then put the money in the bank.
Example: If a tough bank put $1,000,000 in the bank and the bank will pay him 5 percent a year- while if he will loan the money to a speculator that wish to get a property or to refinance a property, he is going to charge his 5 points and he will get 15 % rate of interest on his money, that's a big difference. Good luck to you all financiers out there.
About the Author:
Robert Newton is a business writer focusing on finance and fast loans and has written reliable articles on the finance industry. He's done his gurus in Business Administration and is at present aiding as a loan expert.
What is the difference between the hard cash lender's programs and the bank across the way? payday lender
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