A "hard money" loan is a short-term bridge loan used to acquire or refinance a property when conventional financing is not available or will simply take too long to close. A hard money loan is a great fit in the following situations:
1) When you need to close fast (in less than 2 weeks).
2) When the property is not generating any income (not leased).
3) When the property needs renovations.
4) When you don't have great credit (below 620)
5) When you can't provide verifiable income (no tax returns available).
6) Foreign National Borrower
At Loan Funding Solutions, our programs for hard money close in some cases as soon as 3 days and up to 7. Our hard money programs no personal income requirements or verification and documentation that your business should have on hand!
What do you use a hard money loan for? Hard money loan, also referred to as an asset-based loan, is typically utilized for funding property acquisitions and improvements, as well as providing short-term financing options for borrowers who may not qualify for conventional bank loans. For real estate investors, a hard money loan can help fund property renovations, which can then be sold or leased out. Once the renovation is complete, the investor can refinance the hard money loan with a lower rate and longer term permanent financing. Essentially, hard money loans serve as a "bridge" for investors until permanent financing becomes available or the property is sold.