Sherman Oaks Hard Money Loans

Should You Go For a Hard Money Loan in Sherman Oaks?

Hard money loans are asset-based loans that are typically used by investors to purchase investment properties. The loan is secured by the property itself, rather than by the borrower's credit score and ability to pay based on income. Hard money loans can be used to finance the purchase of a fix-and-flip property, as well as commercial buildings, construction projects or land.

Hard money loans are typically more expensive than traditional bank financing, but they offer a number of advantages, including:

1. Fast approvals and funding: Hard money lenders are typically more flexible and faster than banks when it comes to approving and funding loans.
2. Less stringent qualifying criteria: Because hard money loans are secured by the property itself, borrowers with less-than-perfect credit can often still qualify.
3. Flexible terms: Hard money lenders often offer more flexible loan terms than banks, which can be helpful for borrowers who need extra time to repay the loan.

How Do Hard Money Work For You

Sherman Oaks Hard money loans are a type of financing used to purchase or refinance properties that are not easily financed through traditional lending sources. Hard money loans are typically provided by Sherman Oaks hard money lenders and secured by the real estate being purchased.

The terms of hard money loans are usually shorter than traditional mortgages, ranging from 6 months to 2 years, and the interest rates are higher, typically starting at 7.99%. Hard money loans also require a down payment around 10% to 30%.

Hard money loans are best suited for short-term financing needs, such as bridge financing or rehabbing a property. They are not ideal for long-term financing needs, such as purchasing a primary residence.

How Are Hard Money Loans Structured In Sherman Oaks

Sherman Oaks hard money loans are typically structured as interest-only loans, and exit strategy at the end of the loan term. This means that the borrower only pays interest on the loan during the term, and the entire principal balance is due at the end of the term. This can make hard money loans a risky proposition for borrowers, but they can be a good option for those who are confident they will be able to repay the loan in full.

Best Strategy To Pay Back a Hard Money Loan

When it comes to hard money loans, there are a few different ways that they can be paid back. The most common way is through a refinance, where the borrower takes out a new loan to pay off the hard money loan. This can be done with a conventional mortgage loan, or another type of loan.

Another way to pay back a hard money loan is by selling the property. This is often done when the borrower is unable to get approved for a refinance, or if they need to sell the property quickly.

Ready To Apply? We Are Here To Assist You With Every Step of The Way

If you're looking for a hard money loan in Sherman Oaks, there are a few things you should keep in mind. First, make sure you work with a reputable lender who has experience in this type of lending. Second, be prepared to pay a higher interest rate than you would for a traditional loan. Finally, remember that hard money loans are typically for shorter terms than traditional loans, so make sure you can repay the loan on time. With these tips in mind, you'll be well on your way to getting the funding you need. Please call us at (855) 858-0853 or request a free consultation.