Hard Money Equity Loans and HELOCs

Hard money loans, also known as private money loans, are home equity driven mortgage loans funded by private investors and companies using their own money secured by a real estate trust deed, eliminating the common qualification and underwriting guidelines of prime (regular) and sub-prime (bad credit) lenders.

Hard Money Mortgage Refinance & Equity Loans

Home Equity Mart’s expertise lies in providing timely financial solutions to individuals in need of equity loans and hard money financing. We recognize that not everyone possesses impeccable credit, which is why we extend our services to those in dire need, offering swift approvals and adaptable terms.

With a hard money HELOC loan, you can secure the funds necessary to expand your business without the hassle of traditional banking procedures. We will help you find local hard money lenders that will tailor specifically for personal business proprietors seeking rapid access to capital, these loans offer an expedited solution to financial needs.

Find Savings When Refinancing Debt with Hard Money

Many homeowners want to consolidate high rate debt with a HELOC. It makes sense to leverage your property if you can easily find meaningful monthly savings. Reducing credit card interest rate can be a pragmatic way to accomplish this from a home equity loan for low credit scores. If your fico scores drop below 560, you may need a hard money lending program. The Home Equity Mart can help you find private lenders that provide special hard money loans for cash out and refinancing.

What Is the Benefit of Using a Hard Money Lender?

Hard money loans serve as a short-term borrowing option, favored particularly by real estate investors, although they can also serve as a valuable resource for borrowers possessing assets but facing credit challenges.

Can I Get a Hard Money Credit Line for Business?

A business purpose loan denotes a mortgage intended for commercial or investment endeavors.

  • A real estate investor’s undertaking of a fix-and-flip project.
  • A home builder’s construction of one or more residences.
  • A 12-month bridge loan for an investment property.
  • A pre-development land loan for a real estate developer.

Virtually all hard money mortgage lenders exclusively offer business purpose loans, contrasting with consumer purpose loans designated for personal or household use. Instances of consumer purpose loans encompass financing for primary residence acquisition, personal credit card debt consolidation or home renovation projects.

Can I Buy an Investment Property with a Hard Money Loan or HELOC?

Opting for a hard money equity loan can prove advantageous when acquiring an investment property. Home Equity Mart will help you uncover hard money lenders that prioritize the property’s value over your credit score. On the other hand, borrowers with subpar credit may still secure a hard money line of credit for investment property purchases.

What Are the Terms of a Hard Money Equity Loan?

The repayment duration of a hard money loan typically ranges from six months to a few years, reflecting its short-term nature. In contrast, traditional mortgages generally feature longer repayment terms spanning from 15 to 30 years. The hard money interest rates are dramatically higher than traditional mortgages because the risk factor is so high for private lenders. The hard money closing costs and lending fees are significant higher than conventional mortgages as well.

When Lenders Turn You Down Because of Bad Credit

“There are private investors who, if the interest rate is high enough and the perceived risk is low enough, they will put the money up,” says Pam Strickland, owner of Mortgage Consulting Services in Santa Barbara , Calif. These investors, typically called “hard money lenders”, make loans to people who are being turned down due to these and other reasons:

  • Borrower’s FICO scores are below 500 due to recent bankruptcy or bad credit;
  • Income is unverifiable or borrower lost his/her job;
  • Balloon payment on existing loan is due now;
  • Foreclosure is imminent;
  • Borrower is purchasing odd or non-conforming types of properties (land, mixed use, etc).

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