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Why Choose Owner Occupied Hard Money Loans

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There are a lot of reasons why a consumer is unable to qualify for a residential mortgage. But owner occupied hard money loans offer them a great option.There can be a great many reasons for a traditional lender such as a bank or credit union to deny a loan application. And after that happens many potential homeowners simply give up on their dream of homeownership. But what they don’t understand is that there is a non-traditional option available that might be a perfect fit for their lending needs. Owner occupied hard money loans are great for consumers who have certain financial issues which are precluding them from using a traditional loan. Poor credit can be the result of many different issues. Sometimes it is simply due to poor financial choices but on other occasions, it is not due to a consumer’s mistakes. The loss of a major income is sometimes unforeseeable and can result in falling behind in household expenses. An accident or sudden illness can also be to blame as the consume…

Guide to Successfully Selecting a Hard Money Lender

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Not everyone can qualify for a traditional home loan. But in some cases, hard money loans can be a solution for a new home purchase.Not everyone can meet the standards of a traditional bank mortgage. The reason for the application denial can range from past credit issues to not enough time at your current employer. But if you are determined to purchase a new home and are willing to make a good-sized down payment, then hard money loans can make your dream come true. Before jumping into hard money, you need to understand that these are loans funded by a private individual or a small group. And also know that the documents that you will sign for a hard money loan are as legally binding as any loan documents from a bank. The main difference in hard money loans and traditional loans is that the hard money lender is interested in the current market value of the property more than the borrower’s creditworthiness. The property is being used as collateral, so the lenders need to know that if t…

What are the Differences between Private Money (Hard Money Loans) and a Bank?

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As an investor, why would you consider Hard Money Loans instead of a conventional bank loan? Take a look at the reasons why many a real estate investor is using this type of funding. You finally narrow down the property that you want to invest in. You make an offer and it is accepted. Now, time is of the essence and you need to secure financing quickly. You contact your local bank and find out that the time to close a loan is 30 to 60 days at best. Not to mention the loads of paper work that you must produce in order to support the loan. Hard money loans can move quickly, in some cases it can take as little as 3 days to get funded. Another advantage to hard money lenders is that they are not concerned with the borrower’s credit history or income, but rather the equity in the project itself. If you have had a challenged background, bankruptcies, or tax liens which would get you turned down by a conventional lender, you may very well get financing through a hard money lender.If you are …

Guide to Successfully Selecting a Hard Money Lender

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Selecting a hard money lender is not as simple as driving to your local bank. But using a few tips you can make a great selection who will meet your hard money needs.The total cost of borrowing is certainly one of the largest factors to consider when evaluating lenders of any type. You are trying to secure the best interest rate as well as the overall terms that best meet your needs because no one ever wants to waste money. So, when seeking a traditional loan, you really focus your scrutiny on the rates and terms of the proposed loan. But when you enter into the world of hard money, there can be several factors which should be scrutinized with equal intensity. The reputation and legitimacy of a hard money lender is a critical factor in your selection process. Unfortunately, there are some unsavory characters who choose to portray themselves as hard money lenders simply for the purpose of scamming potential borrowers. So, a good first step in your investigative process is being certain…

What You Should Know About Owner Occupied Hard Money Loans

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Hard money loans are also known as private money loans. Most investors prefer the favorable terms and ultra-low rates of conventional financing, but there are certain situations when owner occupied hard money loans can help you achieve your dreams. If you cannot qualify for a conventional loan and you have a down payment of 30-40%, you may have a short-term solution, a hard money loan to assist you in acquiring a new home. Keep in mind that owner occupied hard money loans are usually easier to obtain than conventional loans. Most loans were equity based until 2008. At the time, if your loan to value (LTV) was 60% or less, a commitment would be issued without the lender considering if the borrower could repay the loan.In today’s environment, the lender must confirm the ability of the borrower to repay the loan. This is tied to Dodd Frank law and a host of other regulations. On the other hand, owner occupied hard money loans can usually be obtained with a 30% down payment. The lenders m…

How to Select a Hard Money Lender

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Because many borrowers are unfamiliar with the concept of a hard money lender, they are unsure how to select a good lender. But a few tips on the selection process can make the process much less stressful.For most borrowers, hard money lending is not as well known a resource as a traditional lender. But there are a great many choices for a legitimate and honest hard money lender. All borrowers need to do is follow a few tips and guidelines when checking out potential lenders to ensure that they make a great choice and are satisfied with their hard money borrowing experience. Especially for a first experience in hard money lending, it is always a good idea to select a firm who specializes in hard money. The terms and processes for a hard money loan vary a bit from a more traditional loan so having an experienced lender can make your first borrowing experience must less stressful. In addition, an experienced lender will be in a much better position to answer your questions and provide y…

How To Benefit From Owner Occupied Hard Money Loans

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Many consumers are unaware of owner occupied hard money loans. But these non-traditional loans can offer certain borrowers some great opportunities.There are many reasons that a consumer seeks to borrow money from a non-traditional lender. In most cases, the hard money becomes an option when the borrower has bad credit, has a very hard to verify income or irregular income or the property is in disrepair or has other types of issues. All of these complications make it impossible to secure a loan from a traditional lender such as a bank or credit union but owner occupied hard money loans can meet the needs of these consumers. Bad credit can be the result of one’s own financial mistakes or they can happen after the loss of employment or even a medical issue that resulted in huge bills, but the result is always the same. The consumer is not able to secure a traditional loan for many years Even after correcting his or her credit issues and creating a nice savings for a down payment, it can…