Louisiana Private Lender | Hard Money
How do I get preapproved for a hard money loan?
To get pre-approved for a hard money loan with us, you would need at least $7K to $10K in reserves. Your financial stability is an indicator of the overall financial discipline and history of good money management.
Is it easy to get a hard money loan?
Despite the name, hard money can be easy to get — if you can make a big down payment and stomach higher interest rates and fees, that is. If you have a need for mortgage speed, a hard money lender may be the answer, as long you understand the terms of the loan and know what to look for in the fine print.
What does a hard money loan cover?
A hard money loan is a unique type of loan in which funds are secured by real property instead of the borrower's creditworthiness. Similar to a short-term bridge loan, hard money loans are primarily used in real estate transactions when the lender is an individual or company, as banks do not offer them.
What is the average interest rate on a hard money loan?
Although these rates vary from one hard money loan lender to another, the average hard money loan interest rate for 2020 is 11-13%, according to Bankrate. Still, depending on the lender, it might be anywhere between 7% and 15% annually.
Is Hard money the same as cash?
A hard money loan is considered cash not because its similar to it. It's because it's different from traditional bank financing. Unlike traditional financing, a hard money loan isn't based on the current market price of a given property. It's based on its future after-repair value.
Do Hard Money Lenders look at DTI?
Hard money credit questions come up a lot for us. Most people are surprised that we're not concerned about tax returns, DTI, or verifiable income to make a loan. ... Hard money lenders like Little City Investments have the flexibility to place the emphasis on the real estate asset instead.
What is the difference between a hard money loan and a soft money loan?
Hard money loans are made by a private investor or group of investors. Soft money generally is also secured by real property and is also dependent on the borrowers credit history, income, and down payment. Soft money generally refers to a conventional loan made by a bank or mortgage company.