Hard Money 24/7

Real estate investors with bad credit will find it difficult to get financing for their residential & commercial projects from traditional sources like mortgage lenders and banks. The ideal way to get your projects financed is through a bad credit hard money loan from a hard money lender.

Many bad credit hard money lenders consider other compensating factors of investors beyond credit history while making their decision to finance real estate projects. The value of the property is the most important factor that hard money lenders consider. A property with substantial equity when purchasing is easier to get financed. The property purchase price should typically be 40-60% of the after-repair value. Having equity allows lenders to confidently lend irrespective of the credit situation. Lenders who specialize in financing bad credit investors basically look to fund projects where they can at least recoup the amount they lent even if a investor defaults or ends up in foreclosure.

Hard money bad credit loans carry high interest rates and shorter terms. The interest charged on bad credit loans is typically in the range of 12% – 20%, while the loan term is usually one year or less. High interest rates are necessary for hard money investors to compensate for the risk they bear. Most of terms can be negotiated based on the lender’s guidelines which are generally flexible and accommodating.

Residential Bad Credit Hard Money Loans

Lenders pay more attention to the credit history of the borrower when the project involves residential properties like single-family homes, townhouses, condos, duplexes, triplexes and fourplexes. A property should have less than four units to be considered as a residential property. Bad credit hard money loans are appropriate when the investor plans to flip/sell the property after renovation work is complete. Experienced investors with a history of efficient and effective track record in completing projects on time and on budget will get easily financed. It becomes imperative to establish good relationships with bad credit residential hard money lenders to quickly get the money needed. Hard money residential rehab lenders can fund your fixer-upper, renovation deals if the risk profile of the property meets their guidelines.

Commercial Bad Credit Hard Money Loans

Commercial properties like apartments, office buildings, hotels, motels, retail strip malls and nursing facilities can be financed through commercial hard money loans even if the investor has bad credit. Unlike the residential hard money loans, the emphasis here is primarily on the property. By identifying a commercial property with good deal of equity, investors can hope to get financing in a reasonable time period. The lending guidelines are usually flexible to accommodate a variety of borrowers and property types.

Construction, raw land acquisition, rehab, bridge financing can be completed with bad credit hard money loans if the loan scenario makes sense to the lender in spite of bad credit.