If you’re looking for a “How To Get A Hard Money Loan” you’re probably in the market for financing some sort of real estate investment project. Fortunately for you, there are a handful of ways to get funding such as private loans, traditional loans, and hard money loans.
In Orange County, CA, each of these means of financing carry their own regulations, guidelines, and are all different in there own way. Take for example the application process for a hard money loan vs. a conventional loan from a bank, which is completely different.
Traditional Loan Drawbacks
If this is your first real estate investment or you are a first time borrower, you may think that bank financing is the only way that people get the funding they need. Traditional bank loans can be very slow and present a number of complications.
Pre-approval Process – Traditional bank loan applications start with a pre-approval process which is followed by requests for virtually every imaginable financial document.
Our Orange County Hard Money Lenders say they will generally request copies of your tax returns, bank statements, credit card statements, and will want to know where your down payment is coming from.
Additionally, our Orange County Hard Money Lenders say, typically if you have money given to you or another investor is involved in the project, they usually expect notarized documents attesting to the source of your down payment.
Bank Property Appraisals – Another basic practice of traditional loans is an inspection and appraisal of the property by an agent hired by the bank.
Orange County Hard Money Lenders say that in the case of fix and flip investments banks are typically hesitant to loan based on what a property will be worth after renovations, until the renovations are fully completed.
Lengthy Approval Process – After you have leaoed the documentation and appraisal obstacles it can still a month or more until they give you the go ahead on closing the deal on the property.
This generally means if you have identified a prime home or investment opportunity someone else may be able to get the deal done faster and take the opportunity right out from under you. This can be quite a frustrating experience for investors or potential home buyers.
Restrictive Credit Limitations – Orange County Hard Money Lenders say traditional bank loans have much different standards and will not offer financing to people who have bad credit, or no credit.
A majority of Orange County Hard Money Lenders will tell you that If you are just starting out and don’t have any credit history, or you have some history that meant bad credit you will most likely be denied a conventional loan.
Hard Money Loan Benefits From Our Orange County Hard Money Lenders
Orange County Hard Money Lenders say that clearly there are limitations to traditional loans offered by banks, especially for fix and flip opportunities. The generally take longer and are limited by bank conducted property appraisals. Overall, hard money loans offer huge advantages for investors and home buyers.
Much Faster Application Process – The application process requires less documentation and is conducted much more quickly. The borrower’s financial history will be looked at but more importantly if the borrower is able to produce a down payment and the project’s merits.
A handful of loan applications can be approved and funded in as little as 7-10 days! Compared to the month or more that conventional loans you will have a much greater probability of getting the property secured for your real estate investment project, or the home of your dreams.
Greater Fix & Flip Flexibility – For the most part, Orange County Hard Money Lenders evaluate the feasibility of project to turn a profit based on what it will generate during the renovations or when the project is close to done.
Orange County Hard Money Lenders say the condition of the property is taken into high consideration but hard money lenders are not as concerned with the present value of the property as they understand that an integral element of the process is to improvement of the property.
A key factor which Orange County Hard Money Lenders value is, how fast a real estate investment will make them back their investment, plus the interest on the actual hard money loan.
Funding For A Bad Credit Hard Money Loan – Whether you’ve just started out and don’t have any established credit history or if you have had problems with your credit, hard money lenders have much more flexibility to who they make loans to.
Orange County Hard Money Lenders say this is generally major advantage for a lot of consumers that have unavoidable credit challenges but still want to purchase a home, or want to get involved with real estate investing.
Learn To Easily Obtain A Hard Money Loan With Decent Or Bad Credit
Traditional loans are almost impossible to get with bad credit, or no credit. Orange County Hard Money Lenders seek out more of your ability to pay back the loan and the overall merit of the real estate purchase.
With the correct down payment or collateral property individuals with bad credit have the opportunity to purchase the properties they desire to live in, or they would like to invest in.
In addition, Orange County Hard Money Lenders say a huge advantage of hard money lending is that homebuyers or real estate investors can get funding despite credit challenges.
It’s quite seamless to get a hard money loan and you begin by simply filling out a hard money loan application. The best part about it is that less financial documentation and time is required to figure out if you quality for the loan you are looking for.