Important Facts That You Must Be Aware Of Regarding Hard Money Loan
One thing about hard money loan, or better known as private loan money, is the fact that this is a type of loan that can only be attained from sources that are specializing in the construction of the said loan. Furthermore, we want you to know as well that this is a kind of loan that comprises of a first mortgage on a residence that leads to the creation of hard money residential loans. You should know by now that when it comes to the identification of hard money loans, there are several important factors to be considered.
One example of which is the first mortgage, which we have already stated earlier on in this article. And because the credit score of the borrower will not matter the same way the equity of their property does, when a first mortgage takes effect, it will prevent any possible loss of the entire property, especially if there is another loan ahead of the hard money loan. If you are wondering why the credit history of the borrower will not matter for hard money loan, well, that is due to the fact that the lender looks to the property for its security, not to mention that the lender is being paid dearly for the chance that they take by basing all the money on the value of the property alone.
The next thing that you have to be aware of regarding this matter at hand is the fact that another facet of a hard money loan has something to do with them usually charging very high interest rates and high points as well. In some cases, if the property of the person applying for a hard money loan is secured enough, … Read More..Read More →