Hard Money Myths Dispelled
There is a lot of misinformation on the web in regards to a unique kind of home financing referred to as hard money lending. Like any different kind of mortgage, hard money loans are designed for a particular segment of borrowers, and they aren't right for everyone. Unlike traditional home financing solutions, in which borrowers are approved based on their financial status, hard money lenders are approved or otherwise approved using the property being financed as collateral. In this week's blog, we'll discuss and dispel some common hard money myths. If you live in Tampa, Orlando, Sarasota, or nearby Florida, and you're interested in learning more about hard money lenders, contact Associates Mortgage loan of Florida, Inc.
Myth: Hard money lenders are for Desperate People
Truth: It's true that some borrowers choose hard money financing because, on paper, they may not qualify financially for traditional loans. While they are simpler to qualify for, they have some other benefits that make them attractive even to borrowers in great financial standing. Some borrowers enjoy how fast hard money lenders could be completed quickly for fast cash and have less tape than loans provided by institutional lenders.
Myth: Hard money lenders Cash Higher Interest Rates than Traditional Loans
Truth: Some hard money loans will have higher rates of interest than some traditional mortgages; however, there are lots of ways to mitigate these costs. Hard money borrowers who curently have an established relationship with a lender, for example, might be able to get very competitive rates even compared with traditional loans. As these loans are executed quickly, they can help borrowers who buy investment properties move quickly and start earning money faster.
Myth: Hard Money Loans Do Not Require Cash Up Front
Truth: Hard money borrowers actually will have to pay a bigger deposit for a hard money loan compared to a conventional, conforming loans. Most hard money lenders is only going to hide to 65% from the property's value, and that means you may need to raise at least 35% of the funds yourself.
Get Started Today
With a lot of hard money myths out there, it’s easy to understand why there’s a lot confusion around this type of lending. When you're ready to learn more about hard money lenders along with other financing solutions for your home or investment property, contact Associates Mortgage loan of Florida, Inc. Our qualified loan specialists will help you figure out how much you can borrow and supply preapproval. We use clients in Tampa, Orlando, and Sarasota, FL, so let's get started today.