Hard Money Loans
WHERE DO WE LEND
What is a Hard Money Loan? A true Hard Money Loan is an asset based loan, meaning that the financing relies on the loan-to-value (LTV) of the asset. Unlike the Fix and Flip loan, it bypasses full underwriting and does not require a minimum FICO score from the borrower, as it follows fewer guidelines and criteria. However, even though your credit report score is not a critical factor, you will still need to obtain a credit report when working with a private money lender.
Why Should You Use A Hard Money Loan? The primary advantage for real estate investors utilizing a hard money loan is the swift funding capability of a private money lender, such as Stratton Equities. With Stratton Equities, a hard money loan can be funded in as little as two weeks, in stark contrast to the 30 – 45 days typically required for traditional bank loans. This makes asset based loans an attractive option for those looking to seize real estate opportunities quickly.
How Do You Benefit From Working With A Private Money Lender and Asset Based Lending? Unlike conventional financial institutions and traditional mortgage lenders that rely heavily on proof of employment, tax documentation, and credit scores, a private money lender offers more flexible options. With asset based loans or hard money loans, the focus shifts to the value of the property rather than the borrower's financial history.