Hard money lenders are lenders that offer hard money loan when the borrower receives funds secured by real property. These loans contain high-interest rates (starting with 7,7%) and are higher than commercial or residential property loans offer.
Along with an asset-based loan with a high-interest rate, hard money loan is suitable for difficult situations such as foreclosure, bankruptcy, or arrears on the existing.
You can apply to different sorts of the hard money lenders:
- Commercial banks especially fit those borrowers that owe a traditional business.
- Mortgage banks offer loans for a mortgage but the terms are very short and you will face balloon payment at the end of the repayment period.
- Mortgage brokers are good as they offer a variety of the options.
- Private financial companies.
- Credit unions are a tempting offer. These are non-profit organizations and they offer lower interest rates as they don’t have to pay taxes. Applying to them maybe a complicated thing as some of them are open to certain business groups and organizations. Still, if you are looking for hard money lenders Florida, you can consider this option.
- Online lending companies are one of the best options for borrowers. The main advantage is that it’s possible to choose among hundreds of offers. One thing you should keep in mind: don’t forget to check out the reviews of the potential lender first.