Hard money loans are easy to qualify for and can be a great option for borrowers with bad credit or limited income documentation. However, there are still a few requirements to take into account:
- A borrower must have equity in the property used as collateral.
- A borrower must be able to prove that they can repay the loan. It can be done with a pre-approved sales contract, proof of income, or other financial documentation.
- The property used as collateral must be in good condition and located in an area favorable for real estate investment.
If all of these requirements are met, a borrower would be able to qualify for a hard money loan.