subject: Fulfill The American Dream With Residential Hard Money [print this page] While some homebuyers are approaching the real estate market with a grain of salt, a recent poll conducted by the Federal National Mortgage Association showed that many Americans still want a house of their own despite the recent setback in the housing industry. The public sentiment survey carried out by the housing organization, which is popularly known as Fannie Mae, proved that many people still regard homeownership as the American Dream.
If you are one of those people who hold on steadfastly to the American Dream but dont have the necessary funds to buy your own home, I have a perfect solution for you. It is called residential hard money.
Hard money lending is the ideal solution for those who want to invest in a property but cant qualify for conventional loans due to a number of reasons. It is asset-based and the borrower will get funds according to the value of the property for which the loan is being made.
A borrower can secure hard money even if he (or she) has a poor credit score or cant produce a verifiable proof of income. This type of financing also has less stringent and lengthy underwriting process that is common in conventional lending, meaning you dont have to submit lots of financial documents and face a processing team or panel.
The capital for residential hard money is usually provided by private individuals and small lending companies that want to earn extra money by financing risky or unconventional real estate deals. Banks and institutionalized lenders dont provide hard money loans, which is why you wont get hard money by approaching these traditional financial institutions.
Because the risk of default is significantly higher when it comes to hard money lending, securing hard money can be quite expensive for the average borrower. Annual interest rates can be 12% to 18% of the loan being made. In addition, most hard money lenders ask borrowers for origination fees, which are used to process a loan application, as additional security.
Despite these little disadvantages, however, it is still advisable to use residential hard money when buying a house for you and your family. Because you dont have to endure a lengthy underwriting process, you can quickly get the funds you need and immediately buy the house that you want.
If you need a good source of hard money to fulfill your American Dream, go to www.RehabHardMoney.com.
by: Jeff Collins
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