subject: When Is The Best Time To Use Residential Hard Money? [print this page] Providing your family with a home that you can call your own is one of the biggest achievements that you could ever make in your lifetime. Due to the ongoing economic crisis, however, buying residential properties is something that many of us cant do. Because many people are having trouble with their finances, it is hard to secure funds that you can use to fulfill the American Dream.
Fortunately, lenders of residential hard money can provide solutions to your financial problems. These non-traditional financiers can help you provide a nice home to your loved ones. And whats more, you can borrow money from them, even if you lack creditworthiness.
Basically, hard money loans are asset-based. This means that the lender gives importance to the value of the property offered as collateral over the credit score of the borrower. As long as the house that he is borrowing money for has a high after repair value (ARV), a borrower can secure hard money even if he has his ears up in debt.
Typically, hard money lenders lend around 65% of the collateralized propertys ARV. For instance, if the house you want to buy has a value of $100,000 once it has been repaired and renovated, youll get about $65,000 from the hard money lender. Just remember that the key to obtaining a bigger loan is finding properties with high after repair value.
Aside from buying properties, residential hard money can also be used to avert a financial disaster. There are borrowers who apply for hard money loans to prevent their properties from being foreclosed by the bank or to stop themselves from filing bankruptcy. Like what was mentioned earlier, you can borrow hard money even if youre currently as poor as a pauper.
In addition, hard money lenders act quickly since they dont have to conduct credit checks or study mountains of financial documents. Even if you have been given by the bank a couple of days to pay back the money you owe, you can still meet the deadline and get the funding that you need since a hard money lender can process a loan application in a day or two. Some lenders can even do it within 24 hours.
Meanwhile, if youre looking for a reliable source of residential hard money to buy a house or pay back a loan, simply go to www.RehabHardMoney.com. The website can help you find a lender who can fulfill your financing needs.
by: Richard Griffith
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