Published on October 13th, 2021 | by Day Trader
Should You Apply for a Hard Money Loan?
Are you struggling to get a loan to purchase or renovate a property? Most traditional mortgage and HELOC loans are going to come from banks and other traditional financial institutions. These institutions generally don’t keep the loans they process in house. Instead, they sell them to 3rd-party lenders so they can regain the capital they need to support the next set of clients they work with.
If the property you need a loan for is in bad condition or your credit isn’t in ideal condition, you may not be able to get a traditional loan. Instead, you may need to work with a hard money lender.
When you put in a hard money loan application, you won’t have to worry about your credit score or many of the stipulations on traditional mortgages. But that doesn’t mean that these applications have no requirements. If you’re in the middle of bankruptcy proceedings or the property is in such bad shape that it is truly a bad investment, you may still have trouble getting a loan. Still, a hard money loan from a non-traditional financial institution may be your best chance at financing the project you have in mind.