3 Reasons to use Hard Money
Here are just a few reasons to use hard money if you are looking to build up your real estate portfolio this year. There are many reasons to use hard money for your investment property needs whether you are looking for fast turn times, present a stronger position with your offer or have credit history issues, hard money lending may be a great choice for you or your team. Sometimes you need to compete against cash buyers or have had credit issues in the past.
Typically, lenders look at the credit worthiness and property asset when qualifying a borrower for financing. That can take time and also leave you without financing after all is said and done if you do not fit in their box of qualifications. That is where hard money cones in hard money lenders look closer at the asset more so than the credit worthiness of the borrower.
3 reasons to use hard money:
1. FAST TURNAROUND TIME
The application and approval process for a standard bank loan or mortgage lender can be time consuming and tough.
It involves filling out multi-page forms and submitting supporting documents. With the number of requests banks get, it can take weeks for a lender to respond or approve them, and the property you want might be off the market by then.
On the other hand, applying for hard money loans takes much less time. Pre-approval can occur within minutes of speaking to a lender, and you can get funded within a fraction of the time it can take a bank.
2. STRONGER POSITION WITH YOUR OFFER
If a property is in high demand, the investor that has a hard money loan has the most to offer. Since hard money loans have a faster processing time and less red tape, there are fewer opportunities to fail with hard money.
Also, if a lender turns the buyer down for a loan, it will ultimately kill the deal. Hard money lenders, however, can provide quick financing when a bank pulls out of a deal so that you can save the deal and buy the property.
3. CREDIT HISTORY VS PROPERTY VALUE
When you want a loan from a bank or mortgage lender, they look at your credit scores and income history to decide if they will approve your request.
With a hard money loan, lenders focus more on the value of the property, instead of looking at credit and income. The property becomes collateral for the loan, in case you default.
This allows you to get a loan even if you don’t have the strong credit and income that banks require.
Not sure where to get started with investor financing?
These were 3 reasons to use hard money for your investment property needs. I hope you found this informational. If your would like to know more of what we can do for you, please email me
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Valor Lending Group can fund your fast-hard money loan up to $10mm in as little as 7 days often without an appraisal.
Valor Lending Group also offers literally every loan in the book! Check out more information on our programs and please do not hesitate to call on me for any scenarios. I look forward to an opportunity to demonstrate my prompt and professional service.
Recap of our Loan Products:
- Hard Money Loans (20% down / minimal documentation) Typically Fund in 7-10 days.
- Stated Income Loans (Great for business owners and self employed ) No tax returns!
- 100% financing is available (we can cross collateralize other properties if there is enough equity)
- Valor VA Home Loan 100% financing up to $1.5MM
- Investor Cash Flow Loan – No tax returns or DTI calculation! Based on subject property cash flow – No Coverage needed DCR!
- Flipper & Rehab Loans (Flip a property with one of our many options)
- 2nd Position Loans up to $5mm
- Raw Land & Lot Loans
- Ground up Construction for spec homes, custom homes and commercial ground up.
- Farms, Vineyards, Ranches and Agricultural Properties (25-30% down)
- 5% down Jumbo’s with NO MI up to $2mm / 10% down up to $3mm
- Manufactured Housing / Mobile Homes (20% down / 600+ credit score)
- Acreage Properties
- Commercial Loans up to $500mm
- 3% & 5% down Conventional Loans– LPMI (Lender paid mortgage insurance)
- Foreign Nationals Loans (no social security or residency required)
We also offer:
- 10, 15, 20, 25, 30 year Fixed, Conventional Conforming Loans (under $510,400)
- High Balance Conforming aka Super Conforming (from $510,400-$765,600)
- Jumbo’s to $10 Million / Super low rates! / 10% down Jumbo to $3mm
- FHA, USDA
- Reverse mortgages up to $1 Million Value
- Refinance including Cash Out