Hard Money Loan

• Hard money loans in are lending companies, which also include individual lenders, direct loan lenders; who offer specialized type of loan which are guaranteed.
• The lender may offer loan, which may be either short term or long term depending on the business type and need.
• The capital offered by the lender is based on the guarantee, which the borrower is ready to offer and accept.
• The guarantee that the lenders can use or own are cars, boats, land, airplanes, hard assets, paintings, etc. connected with the capital borrowed in under hard money loans for rehab.
• The lenders who offer hard money loans tend to focus on the value of the guarantee and accessories rather than the borrower’s ability to repay.
• The lenders usually charge high interest rates than banks because they fund deals.
• Lenders hard loan lending does not match with the standards, which are followed by the banks like verification of borrower’s income, assets & credit score.
• Commercial, residential, multi-family, land and minimum and maximum loan sizes including some corporate offices, business expansion are where the lenders will pay.
• Licensed NMLS property is a must.
• Borrowers can also verify license of lenders.
• For verification purpose the NMLS can be useful in order to prevent problems at closing of any deal.
• Many states in have a requirement for the lender’s license number, which should be listed on the loan documents.
• Loan documents may get cancelled, if the license number is not present.
• Other forms of commercial hard money broker loans comprises of private individual loan, mortgage companies loan, federal bank’s loan, and SBA Lenders.