Discover Hard Money Loan and How It Works

Many real estate investors hear some terms that they do not understand in the beginning. One of these terms is hard money – it is little understood by many real estate investors and they frequently ask about it. Here is a great explanation of hard money. Before you contact a reliable Evoque Lending - Hard Money Lender, it is important to note that hard money is a form of alternative financing to borrowers who cannot get bank loans. Therefore, when loans need to happen quickly or bank lenders cannot approve a loan for a borrower, hard money can be the best option.

In many cases, for you to qualify for a bank loan, you must display a clear proof that you can repay it as agreed. Many bank loan lenders are interested in your credit and income history. Therefore, the lenders may approve your loan application if you have a solid credit history of borrowing responsibly and the ability to repay the loan.

On the other hand, hard money loan offers special financial accommodation to borrowers who cannot qualify for bank loans due to bad credit history and other financial obstacles. This is because hard money loan uses an asset or collateral to secure the loan. Therefore, instead of evaluating the risk of the loan based on your financial position, hard money lenders make sure that they can get their money by selling your asset if you do not repay the loan as agreed. In addition, you should also have in mind that hard money loans are short-term loans can last from approximately one to five years.

Why use hard money loans?

As previously noted, hard money has its place for borrowers who cannot get bank funding whenever they need it. Due the fact that the lenders mostly focus on collateral and less concerned with your financial position or credit history, hard money loans can be approved more quickly than bank loans. Therefore, to get started, you should work with a reliable hard moneylender such as Evoque Lending – Hard Money Lender to take you through the entire process.

Hard money agreements are also more flexible than bank loan agreements. This is because, hard moneylenders do not use standardized underwriting process. Instead, they evaluate each deal individually.

Qualifying for hard money loan

In this case, a borrower does not require a great credit history to qualify for hard money loan. Hard moneylenders are much concerned with the quality of your asset for them to render you eligible. In some cases, it is even possible to get a hard money loan without the lenders verifying your credit or income information, as long as the value of your collateral tallies with the amount you want to borrow. On the same note, many hard moneylenders keep low loan-to-value ratios. Therefore, the maximum loan-to-value ratio can sometimes range 50% to 70% so you should have an asset in order to qualify for hard money loan.

You can get more information on a reliable hard moneylender such as Evoque Lending – Hard Money Lender at,


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