You may wonder why you should apply for a hard money loan for funding a home purchase or investment project. In fact, many developers and home flippers tend to favor this form of financing. Here are four of the advantages of hard money loans and who might benefit from using this option.
If your credit score is not perfect or you have been self-employed, it can be difficult to get a line of credit from banks and other financial institutions. However, hard money lenders focus on the value of property you own rather than your personal credit record. This way of qualifying borrowers makes it easier for those with poor credit to get approval.
Hard money loans can be a great choice for real estate investors or flippers who want to make renovations or repairs before reselling a property. One big advantage is that many lenders will lend you 70-80% of the Purchase price. In some cases, with experienced rehabbers you can even borrow up to 90% of the purchase price.
Typically, the clearance process for hard money loans takes 10-17 days. This allows you to push ahead with your plans much more quickly than would be the case for a conventional loan, which can take months. This ability to cut through red tape has great appeal for borrowers who need a fast closing in order to flip a home.
Properties such as single family residences, Condos, PUD, multi-family homes, commercial spaces and even land are suitable for a hard money loan.
Are you interested in a hard money loan in Los Angeles? PB Financial Group is one of the best hard money lenders in Los Angeles and surrounding areas. For further information or how we can help you reach your goals please contact us at 323.935.5555 or visit www.Calhardmoney.com.
PB Financial NMLS #357614/DRE #01522495