Our frequently asked questions section provides in-depth answers to common inquiries about hard money lending. Whether you’re a first-time borrower or a seasoned investor, understanding the intricacies of our loan programs is crucial to making informed decisions. We cover topics such as loan eligibility, approval timelines, interest rates, repayment terms, and more.
How do hard money loans work?
Hard money loans are short-term financing solutions backed by real estate assets rather than a borrower’s creditworthiness. These loans are typically used by investors who need quick access to funds for property acquisitions, renovations, or bridging finance gaps. The approval process is faster than traditional loans, with fewer documentation requirements, making it ideal for time-sensitive investments.
What are the eligibility requirements?
To qualify for a hard money loan, borrowers typically need to provide details about the property being used as collateral, a solid exit strategy, and a reasonable down payment. While credit scores are considered, they are not the primary factor in approval.
What are the repayment terms and interest rates?
Repayment terms usually range from 6 months to 3 years, depending on the loan program. Interest rates vary from 8% to 14%, depending on the borrower’s risk profile and market conditions.
How quickly can I get funded?
Funding can be secured in as little as 7 to 14 days, allowing investors to act swiftly on real estate opportunities.