If you need quick cash and you cannot meet the requirements that conventional lenders set, then you can consider hard money loan as an option. As a starting point, you can approach reliable companies that provide hard money loans in your area. For instance, in Los Angeles, you can approach Evoque Hard Money in Los Angeles for appropriate advice and possible assistance.
What are hard money loans?
In theory, hard money refers to giving cash directly to a borrower for no definite purpose, such as cash advances on credit cards. However, when lenders talk about hard money loans, it often refers to loans given to borrowers, using their residential properties as collateral. Hard money loans come with various advantages to both the lender and the borrower. If you are a borrower, here are various ways in which you benefit.
The cash is readily available
Just as the name suggests, hard money loans are available to borrowers in real cash—for any purpose. In conventional loans from commercial banks, the borrower is restricted to use the loan towards a specific project, for example, buying a home. In hard money loans, the borrower can use the cash for a variety of purposes, as outlined below:
Bridging loan – if you are selling your home in one location and buying a home in another community, you can take a bridging loan in form of hard money. The loan gives you quick cash to buy the house before you sell yours.
Business loan – if your goal is to start and new business or expand an existing enterprise, you can approach a reliable lender for hard money loan. For example, in California, you can approach certified lender such as Evoque Hard Money in Los Angeles. Business loans are difficult to obtain from conventional lenders, especially if you have fewer assets to present as collateral.
Home improvement loans – while they are not the same as equity loans, they both involve the house as a collateral. However, hard money loans are easier to obtain.
From application stage to closing, the process is faster for hard money loans compared to other lending sources.
Hard money loans are available on short term
Most conventional loans can extend for up to 36 months or more. In hard money lending, the loan period is contracted to one or two months. For borrowers that do not want to commit to long-term repayments, this is quite advantageous.
Hard money loans do not require credit history
It is common with commercial banks and other financial institutions to check credit history of borrowers first before lending. This often makes many borrowers left out if they have limping credit history. For hard loans, borrowers are able to obtain their loans even with poor credit history. Even if lenders check the credit history of a borrower, they are often after other issues such as criminal offences.
Since the loan is backed by secure collateral, which is the house of the borrower, the credit history is less pressing on the part of the borrower. For more information about Evoque Hard Money in Los Angeles, visit http://evoquelending.com/