If you need money fast and own your own home, you may be able to secure a loan using a hard money loan. These loans are typically paid out much faster than conventional loans you may get from a bank. Although you will pay more in interest, if you need fast cash, this may be your only option. Many homeowners are looking at these loans in order to make needed repairs on their homes today. It is much easier to get this type of loan if you have less than perfect credit.
What Is a Hard Money Loan
Hard money loans are called this because they are usually issued to people who do not have the best credit scores. This is due to late payments they may have made on credit cards or other loans. They are financed by private lenders for the most part and some private lending institutes have begun to issue these also. The interest rates on these loans are much higher than typical loans because of the risk the investor is making. Terms for the loans are generally for less time than conventional loans also. Instead of a normal personal loan for ten years or more, these loans may only go as high as five years. This will depend on the amount of the loan and the lender you are using. The requirements each of these companies will need depend on how much money you are borrowing. They may place a lien against your real property in order to secure the loan for you. This will mean that if you default on the loan, they could possibly foreclose on your home. You should take all of this into consideration before securing this loan.
How to Find a Hard Money Lender
If you look on the internet for hard money lenders Houston Tx residents trust, for instance, you will find that there are several of them listed. You should look at their websites in order to find out what each of them will require to secure the loan. They will differ greatly from one to the other. You can also ask family and friends if they have ever received this type of loan and who they used to get it. Word of mouth is often the best way for you to find a good company to work with. No matter what method you use to find a lender, you should ask them about the loan you want to take and how long it will take to receive the money you need. They will typically be able to close the loan within a few weeks rather than months that typical banks take.
Many homeowners today are having difficulty in paying off high interest credit cards and even though these loans have higher interest rates, they are typically lower than credit card rates. This is a good way of combining all of your debt into one low monthly payment. Take your time when choosing a company and ask as many questions as you can before filing your application.