Non-institutional lenders provide funding through hard money loans. There are numerous hard money lenders who provide fast financing at low interest rates. Visit homepage Priority Investor Loans – Houston hard money loan
As the borrower, you’ll need to conduct a comprehensive investigation into the lender’s reputation and operations, but as you conduct your research, you’ll discover that hard money lenders will help you fund your real estate investment project.
The Advantages of Hard Money Loans
Faster Approvals: Without a doubt, one of the most appealing features of a hard money loan is that borrowers can obtain pre-approval in as little as one or two days after submitting the few documents required by the lender. Hard money lenders are mainly concerned with whether the asset has good market value and whether the borrower has at least 20% equity. Financing may be completed in less than a week, as opposed to a month or even longer for traditional loans. When speaking with hard money lenders, one of the most important questions to ask is how easily they will invest.
Flexible Payments: You’ll have more flexibility with a private lender when it comes to creating a personalised repayment schedule. You won’t have this freedom if you work for a major financial institution. Instead, you will have to accept the bank’s payment terms. For a private investor, on the other hand, you can chat about and come up with a mutually agreeable repayment plan that you think is best for you.
Fewer Requirements: If you apply for a loan from a traditional financial institution, you will be required to follow a number of strict criteria, such as your income background, experience, and so on. It’s no secret that getting bank approvals can be a lengthy process. A hard money lender is unlikely to place as many constraints on you as a conventional lender. There are strong chances that you will qualify for the loan if you have a high-value asset with at least a 20% equity interest in it.
Zero Prepayment Penalties: If you take out a loan from a well-known bank, you will be charged prepayment penalties if you pay it off before the due date. Prepayment penalties are rare among repair and flip lenders, so if you come across some extra cash and plan to pay off your loan before the due date, you can do so without fear of being penalised.
Credit History Isn’t a Problem: When it comes to large lending institutions, your credit history may have a significant effect on whether or not you are approved for a loan. Private lenders put less value on a poor credit history. This is due to the fact that a private lender bases loan approval on factors such as property value, borrower equity, and so on. You have a fair chance of getting funded if you follow these conditions.