Hard money
loan is a type of alternative financing, which lets you get quick funds. Hard
money may be the only option, if traditional lenders do not approve your loan
request. It is a loan that uses an asset to secure the loan. Instead of
evaluating the risk of ending loan to you, the lender ensures whether he can
get back his money by selling your asset in case you do not make the repayment
as per the agreement. If you decide hard
money lending Texas is the best option, it is worth to ask some
questions, so that you can get the best deal.
- What is the procedure for hard money loan Dallas and Houston?
In Houston
and Dallas, the hard money loan lenders provide funds quickly. It is usually
available within 3 days of receiving the final documents from your side. The
reliable hard money loan
Dallas lenders offer loan on single family residential homes and many
other real estate properties.
- What is the Rate of Interest?
The
interest rate varies from lender to lender. The rate ranges from 10% to 18%.
Trustworthy hard money loan Houston and Dallas lenders defer interest payments
to settlement, which benefits investors who do not want to make payments during
rehab.
- What is the Loan to Value Required by Hard Money Lenders?
Hard money
is a bridge loan Texas that is usually offered for up to 70% of the after
repaired value of the real estate property. An appraiser calculates this figure
after considering the repairs.
- What is the term period of the loan?
Hard money
loan is usually offered for a period of 3 months to 12 months. Some lenders may
extend the term for up to 3 years. However, if the loan term is long, you need
to incur increased costs of interest rate.
- What are the costs associated with a hard loan?
Hard loan
costs include title policy, appraisal and insurance fees.
- Is it possible to obtain hard money loan for repairing the home?
Yes, the
reliable and reputable hard money lending Texas companies offer hard money
loans for paying for repairs of the home. You need to complete a “draw request”
form, so that the lender will find out the completed repairs to the home. You
also need to send invoice copies from the contractors and sub-contractors.
- Will the lender check my credit score?
Hard money
lenders do not check your credit score, but they do check for foreclosures,
bankruptcy and charge offs. They ensure whether you have the ability to repay.
As the loan is based on real estate, they are more likely to look closely at
the property than at your credit score.
- Do I need to Make Down Payment?
In most
cases, the lenders require you to make some down payment to ensure that you
have sufficient funds to complete the repairs and cover the loan costs. More
often, you need to pay all loan costs on or before closing.
