What Are Residential Hard Money Loans and How Do They Work?

LOW RATE MORTGAGE LOANS- AN EASY WAY TO PURCHASE YOUR FIRST HOME OR FLIP A PROPERTY

“Residential hard money loan” is a loan secured by a hard asset, such as property or real estate. Are you an owner of residential property in California and wish to renovate your property for sale or to improve the rents you can obtain? A residential hard money loan may be an excellent alternative for you if you’re a property owner, real estate investor, or house flipper needing funding for a deal.

Professional residential hard money lenders in California often help clients navigate the hard money loan transaction process. In addition, assetbased hard money loans, also known as private money loans, give borrowers more flexibility by using their assets (properties) as collateral.

Are you eligible for residential hard money, or who is suitable for it? Residential hard money loans appeal best to those not eligible for traditional bank lending. It is beneficial to people with a credit score that is insufficient to qualify for a standard mortgage or if they have an adverse financial history that most traditional lenders like to avoid! Professional residential hard money lenders in California might be the only option that can arrange fast financing for your needs. Hard money financing may also be an option if you’re dead set on buying a house before you sell your current home. For example, if you want to buy a new home, but your present one has not sold (or you are just listing it), a hard money loan could use your current property as collateral until it sells to help you acquire the new property now.

Hard money lending falls under the category of specialist lending. You’ll have to visit either a private investor or a company dedicated to hard money lending. The appealing feature of a hard money loan is that you can access your money much faster than applying for a traditional mortgage. People get fast loans for acquiring or refinancing a residential property – even if you occupy or intend to occupy the property as a primary or secondary residence.

Residential hard money loans are very common, and there are a wide variety of options in todays market. Such loans are more expensive than more traditional funding because of the higher risk of offering the loan. Higher interest rates on hard money loans are primarily due to increased risk.

Residential hard money lenders in California can help you receive hard money loans for multifamily or other forms of residential property. Rehab loans are a specialized niche of residential hard money products. These allow the investor to buy or renovate new property without selling any of their existing assets or properties.

In addition, these niche loans allow for higher leverage as they are based on the after repair value rather than the purchase price.

All California Lending is fully licensed in the state of California with years of experience in commercial & residential and real estate lending business. Clients can count on them as they can deliver fair terms and help fund quickly. They work with all types of borrowers and understand even the most complex scenarios. If you wish to learn about a residential hard money loan, contact All California Lending today!