Skip to main content

How Your Credit Score Impacts a Hard Money Loan Application

By January 25, 2020June 29th, 2023Blog, Hard Money Lenders
Hard Money Lenders in Los Angeles

If you are looking for a hard money loan to purchase a piece of property in or around Los Angeles, one of the key components in assessing the viability of a loan application is your credit rating. If you have a “poor” or “average” credit score, do not fret. Large banks and traditional lenders routinely place a great deal of weight on a borrower’s credit score while hard money lenders have more flexibility and generally view a borrower in a holistic fashion.  This means a hard money lender is open to working with a potential borrower who may not meet the minimum credit rating criteria that traditional banks are required to comply with under federal law.

Credit Score is Just a Number

No one should be defined in totality by their credit score. Yes, it can be a helpful tool when reviewing applicants, but at the end of the day, it is just a number. For example, there are many instances when someone is in a strong financial situation (e.g. plenty of liquid, history of success in flipping real estate, balance sheet is in good shape, etc.), but their credit score does not reflect this fact and is considered in the “average” or “low” range.  This is a big reason why an arbitrary credit score will not make-or-break your hard money loan application.

Assessing an Applicant

Hard money lenders in Los Angeles  typically use credit scores in two ways when making a decision on a borrower’s loan application – (1) the ability of the borrower to meet their financial obligations and (2) the value of the real estate.

Your credit score, in combination with a host of other factors, will be used in assessing your hard money loan. If approved, your loan can be funded in a matter of days. The term for a hard money loan varies from a few weeks, a few months, or possibly even a few years. A hard money loan is typically a major benefit in getting a “deal done” to make sure you secure that valuable piece of property.

Can Boost Your Credit Score with a Hard Money Loan 

Another benefit of a hard money loan in Los Angeles is the ability to increase your credit score while servicing your payments on time.

Looking for Hard Money Loans in Los Angeles? Take Action and Contact PB Financial Group Today 

If you are looking to work with a highly reputable hard money lender in Los Angeles , take the time to contact the professional hard money experts at PB Financial Group. PB Financial has helped over 2000 clients thus far and can do the same for you. For further information or to schedule a consultation please contact PB Financial Group at 877.700.3703 or visit to learn more.

PB Financial NMLS #357614/DRE #0152249

Leave a Reply

Close Menu