A hard money loan is financing that is secured by real estate, such as a home, and is issued by a private lender, rather than a bank. These loans are often used when a borrower needs to close a real estate transaction quickly and cannot obtain a loan from a traditional bank. If you are looking for the hard money loans service, you may go through Wilshire Quinn Capital.
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Hard money loans are typically short-term loans, ranging from one to five years, with interest rates that are higher than those of traditional loans.
Advantages of Hard Money Loan
One of the biggest advantages of a hard money loan is that they are much easier to obtain than a traditional loan from a bank. Since hard money loans are secured by real estate, the lender does not require the borrower to have good credit or to show proof of income.
This makes them attractive for those who are self-employed or have difficulty proving their income. Additionally, hard money loans usually close more quickly than traditional loans, which can be beneficial for those looking to purchase a property quickly.
Conclusion
A hard money loan can be a good option for those looking to close a real estate transaction quickly and don’t have the credit history or income to obtain a traditional loan from a bank. However, these loans usually come with higher interest rates and shorter terms, so it’s important to understand the implications before taking out one of these loans.