Wednesday 18 July 2012

Hard Money Lenders



Hard Money Lenders can resolve your urgent need of finance. If you don’t have a great credit history, and doesn’t qualify for the standard financial loans or fit to mandatory requirements of a financial institution. You can contact hard money lenders, who can offer short terms loans, usually known as bridge loans. 
The loans or finances offered by hard money lenders usually based on the value of real estate property, which will be collateralized for the loan or finance. The financing comes at higher mark up rates, compared to normal financing through standard financial institutions.
However, for those investors or individuals who doesn’t quality or fit for the necessary financing options, hard money lenders is the only option to get their loans and finances.

Mandatory Requirements

Mostly, hard money lenders offer financing facilities on certain terms and condition. They do have some required standards. Usually, they have requirement about loan to value percentage, type of real estate property that has been collateralized or mortgaged. So, the minimum and maximum amount of finance they will lend against the collateralized or mortgaged real estate property.

Why Hard Money Lenders Charge Higher Interest Rates

Normally the traditional and common credit regulations or guidelines are in place for the protection and safety of standard financial institutions from the risk of loss or default. These regulations and guidelines included prove of income, credit score, and employment duration.
On the other side, hard money lenders bypass, all these requirements or guidelines. So, they usually charge higher interest rates to their customers. This certainly protects them from financial losses in case of their customers might defaults.
History clearly suggesting that the defaults are very much common among the borrowers of short-term or bridge loans, as compared to standard loans customers from standard financial institutions, such as banks and credit unions.

Different Procedures for Hard Money Lending

Besides of the fact that hard money lending consists of higher interest rate. So, it is better for those who can’t get any loan facility due to poor credit history, recent job loss, or not qualifying for necessary documentation.
Whenever, a customer seeking for this type of borrowing, it is very common to offer the real state property being treated as collateral. Hard money lending also involved different procedures for other forms of collateral as well.
The procedure included hard money lenders to offer smaller finance amount the value ration of real estate property. So, the amount a customer can finance will be much smaller, as compared to the actual value of the real estate property.
In certain cases, customers have to collateralize another real estate property to increase the loan amount. This is called as cross collateralization in financial terms.

Charges and Law Regulations

Usually, hard money lenders charge an application fee, and prepayment penalty. These high amounts can cover the higher risks as normally bridge loans have higher default rates than normal or standard financing through financial institutions.
As hard money lenders bypass or overlook many business regulations. There are certain states like New Jersey, Tennessee, have some regulatory laws and also prohibit offering of bridge loans entirely. However, the regulatory laws can differ from state to state.

 
Summary

Hard money Lenders can resolve the financing problems of those individuals and investors who doesn’t seem to have good credit history, or can’t fit or qualifies for the standard financing options offered by standard financial institutions, such as banks, etc. hard money lenders charge you for higher mark-up rates, as compared to conventional financing. They finance against the ratio of certain percentage for the real estate property that collateralized with them for the loan amount. Usually, the loans they finance are known as Bridge loan and there are certain regulatory laws for these types of loans, which differs from state to state.

22 comments:

  1. "Knowledge based article directory" the title exactly suits for the blog as you updated all posts about knowledge based. Apart, hard money lenders are the good topic these days people used to find out about. The way you are explaining about heard money lenders is better to understand.In USA most likely hard money lenders Arizona interest rates are quite reasonable.

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  5. Good information about hard money lenders. For this post a man can know about hard money lenders more deeply. He can know that how hard money lenders are giving loan.
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  6. Thanks for sharing your knowledge based article about hard money lenders. Really hard money lenders are playing a big role by giving loan in a simply way. Thanks for showing the processing of hard money loan.

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  7. Hard money lenders are fill up the requirements of those people who are disqualify for bank loans. They are playing a big role in commercial sectors.

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  8. Thanks for writing about hard money lenders. Hard money lenders are playing a big and effective role in financing. They are giving loan by following some simple rules.

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  9. Hard money loan is making easy to make finance. Now, everyone is using hard money loan to get loan early and easily. Find the best lenders to get hard money loan from www.lendinguniverse.com

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  10. Thanks for sharing the information about hard money loan. Nice blogs. I agree with you and wood timeline also. I have visited www.lendinguniverse.com also. It is a great website for hard money loan.

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  11. Thanks for sharing the information about hard money lenders. Hard money lenders are playing big role in financing. They are participating financial sectors proudly by giving loan with easy rules.

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  12. I am very happy to read your post. Thanks to sharing this with us. Hard money lenders are giving loan based on the purchase value of property.

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  13. There is big credit of hard money lenders in financial sectors. Financial sector is now stronger for the help of Hard money lenders.

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  14. Hard money lenders have the great credit in economical sector. They are financing quicker than banks thus we can make our fund quicker.

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  15. It was a great day when I have got my first hard money loan by the help of Lending Universe Inc. It is a great website which is helping people to make hard money loan easily and early. It is providing commercial, mortgage, home & construction loan, land financing and hard money loan also.

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  16. I have used hard money loan for several times. It was a great experience for me. Really hard money loan has change my business.

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  17. There are no construction businessman who can denied the credit of hard money lenders in their businesses. We can hope for a strong and quick fund system for hard money lenders.

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  18. Although hard money lenders are taking 2% fee for making a hard money loan but the advantages of hard money loan make people unhappy to avoiding hard money loan.

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  19. Hard money lenders are so much respected people in United State of America and Canada. If you are looking for hard money lenders then contact with Lending Universe Inc.

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  21. Hard money lenders are playing a big role in our financial sector. Anybody can get loan from hard money lender if he has property which he can use as collateral.

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  22. Hi, This is a good post, indeed a great job. You must have done good research for the work, i appreciate your efforts.. Looking for more updates from your side on money lenders. Thanks

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