Hard Money Equity Loans
Bad credit borrowers should consider hard money loans with our private money lenders that offer mortgage refinancing, cash out and consolidation. Sometimes in life situations arise that we cannot control, and bills aren’t paid on time and credit scores drop when you need them most. With BD Nationwide we enable you to talk directly to trusted hard money lenders so that you will get the “straight scoop.
If you have several reported late payments on your mortgage, then most conventional lenders will not approve you for cash out refinance or equity loan. Hard money equity loans are needed when credit scores drop in the low 500 range. Whether you need a non-prime loan or hard money lending, we can help you find private money lenders that provide several alternative financing solutions.
Shop Home Equity Companies Offering Private and Hard Money Loans for All Types of Credit
We will help you meet private money lenders that offer hard money loans and credit lines with short-term or extended term financing for investment, home construction, debt consolidation and bad credit refinancing. Choose from spec loans, lot loans bridge loans and many more non-conforming programs as well. Talk to hard money lenders that have bad credit solutions for qualified borrowers.
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See New Cash Out and Hard Money Loan Opportunities:
Many banks talk about offering equity loans for cash back but unless you have high credit scores it’s usually a long shot. That’s why hard money equity loans make a lot more sense for people who do not have great credit scores, Hard money loans have helped millions of people realize their financial goals by helping them tap their equity with cash out.
However, hard money is not for everyone. You’ll have enough equity to qualify for a hard money refinance, and not everyone will be able to do so. There are a few things that will factor into qualifying for these types of loans, including things like your income, debt to income ratio, credit history, and more. For a hard money equity loan, the most important factor of course is your home equity. Learn more on home equity loans with bad credit.
Tips and Advice from Hard Money Lenders and Private Mortgage Sources
Borrowing money from private sources has become very common these days for people who want to invest in real estate. It is still difficult to get regular banks to lend money on investment properties, even for experienced investors. If you are considering a hard money loan, below is an overview and some tips and advice.
Hard Money Loan Overview
A hard money loan is an alternative to a traditional bank loan that investors and some home buyers choose when they cannot qualify for a loan from a commercial lender. Some people also prefer to get a hard money loan instead of a regular loan because they have different needs than regular lenders can provide.
Payment terms are usually higher priced than regular bank loans because hard money loans are a higher risk investment for the lender.
The biggest difference between a hard money loan and a bank loan is that the loan is based entirely on the value of the property. Your personal credit history is not a major factor. Because the loan is not greatly based upon credit history, you will pay a much higher interest rate on a hard money loan. But if you have a profitable asset that you want to fix up and resell, getting a hard money loan could be a great option.
If you are looking for a short-term loan, such as doing a fix and flip property, a subprime loan from a hard money lender is often ideal. After all, you are not holding the loan for more than a few months. But if you have a property that you plan to hold for a long period of time, a hard money loan can quickly become too expensive to be profitable. Shop mortgages with bad credit.
Some of the Advantages of Getting a Hard Money Loan include:
- Speed: The biggest plus of getting this type of loan is that you can get the money quickly. If you are an investor and you see a hot property, you know how it works: If you cannot close on that deal in a week or two, it could be gone. Some private money lenders can get your loan approved in 24 hours. People looking for a hard money line of credit in 1st or 2nd position will have more success getting quick cash than borrowers searching for a 3rd mortgage.
- More collateral options: Hard money lenders can take different sorts of collateral. They will want to see that you have sufficient income from other sources to pay the loan usually, but they also may accept that you have other properties in your portfolio that serve as collateral if you default. They also may be able to accept your retirement savings or personal residence.
- Low credit requirements: There are some hard money lenders that will want to see a decent credit score to loan you money, but others don’t care. The main thing that matters is having an asset that is worth something and that will have additional value when it is fixed up.
- Hard money lenders understand investors: These lenders work with investors in real estate every day and understand what you are doing. If you have a property that can make them money, they probably will loan on it even if your credit is poor. Many regular banks are leery of investors.
Some Disadvantages of Hard Money Loans:
- Higher interest rate: The interest rate on a hard money loan can be 15%. That is extremely high, but remember, you are probably not borrowing the money for more than three to six months. But you can run into problems if you need to borrow the money for a year or longer. You could find yourself losing money by holding the property.
- Short term: Most hard money loans range from three months to a year. Hard money loan costs can be hard to handle when you are working on the property and have no cash flow or profit from it.
- Certain properties only: Many hard money lenders are picky on the properties they will loan on. They all have different lending criteria, and some will be really strict. They want to be sure the property is worth having if you default.
Tips for Hard Money Loans:
- Find a profitable property. No hard money lender will loan on a property that is going to lose money.
- Have an exit strategy planned to show the private money lender. Most hard money borrowers are fixing and flipping properties. Show the lender what you are doing to the property and how much money it will make. Be specific.
- Build up your cash reserves. Hard money lenders like to work with experienced investors who have a track record of success. If you are new, that’s fine, but you can increase your chances of getting approved by having substantial cash reserves and collateral.
- Raise your credit score: While many lenders will loan to people with bad credit, you still should try to raise your score, as you may get a lower rate.
- If you are new to investing, consider partnering with an experienced hard money broker or lender with a portfolio of properties. He can help you to get the loan and work with you to fix up the home profitably.
Do you need cash but currently have credit scores below 500?
Are you seeking some debt relief with lower payments from eliminating compounding interest?
BD Nationwide Mortgage provides solid insight on home equity solutions to savvy borrowers looking to consolidate loans and pay off revolving credit cards. If you have earned some equity in your home and want to reduce some high interest debt it is worth looking into a subprime mortgage, even if you have below-average credit scores.