Hard Money loans are non traditional loans. They are often used for commercial transactions but not always. Hard Money loans are short term loans. They are normally used when a person cannot qualify for conventional financing terms. They are meant for someone to obtain a piece of property and then in a year or two refinance out of that loan. Hard money terms normally come with higher interest rates and prepayment penalties and points up front.
Although not as commonly used a Hard Money loan can be used for residential homes. We have helped clients in cities in Portland OR, Tualatin OR, Lake Oswego OR, to help a client obtain a property. A Hard Money Home Loan is used for various reasons. Some with below average or bad credit, high debt to income ratios, self-employed borrowers who have written off income, people with new jobs who do not meet income requirements, and many more reasons. A high down payments of at least 20% down payment is needed and in most cases even more.
These type of loan are meant to bridge a gap. It is used to obtain the property and then rehabilitate the borrowers situation so they may refinance into a better loan.
If you have a situation that needs to be looked at call for a free consultation.