If you are new to hard money lending, it is normal to have a series of questions. Moreover,  it’s different from conventional lending. The hard money loan process is much simpler, and it has similarities. Hard money lenders are individuals or investment groups that have access to personal and private funds. Conventional lenders have a long list of strict requirements to ensure that borrowers can pay their loans. However, hard money lenders do not operate by the same rules as conventional lenders. They also have their requirements for borrowers, but these requirements are not as cumbersome. The speed and flexibility are the greatest benefits to hard money loans.

Hard money lenders require the following: trust, respect, and accountability from their borrowers. Once a relationship is based on this, the hard money lender will proceed to process all the required loan documents. Also, a hard money lender might observe a borrower’s credit score. Although, it is a rare occurrence.

To the crux of the subject matter, while some hard money lenders usually require down payment, some do not. It is dependent on the situation, the property value, and the borrower’s existing experience and relationship with the lender.

To know more about hard money loans and some of their requirements, click here.


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