In recent years, many mortgage borrowers are facing challenges due to the strict lending requirements that lenders impose. If you are finding it hard to qualify for a conventional mortgage, you can opt to get a loan from a private mortgage lender. Private loans for real estate or hard money loans are provided by private investors who are willing to lend money to people to purchase a particular property. You can find Atlanta private lenders for real estate by joining a real estate investment club in this city or by asking your friends or family members to refer you to such lenders.
Hard money loans are a good option for borrowers who cannot qualify for a traditional mortgage because of a poor credit score, or self employed people who are unable to show proof of steady income. The property acts as security for the loan. Therefore, it is possible for a person to qualify for a loan if the property can be sold at a profit.
The repayment period for hard money loans is much shorter than that of conventional mortgages. The reason for this is that the lenders seek to get quick returns on the money they have loaned out. The loans are set up to be repaid within a few months or years.
It can be convenient to get a loan with a repayment period of 2 years or less. For example, investors can apply for it if they plan to sell the house within a short period. With such a loan, investors can buy a property and sell it for a profit.
You may also apply for a hard money loan if you expect to qualify for a conventional refinance a few months after acquiring the house. Applying for such a loan can also be a good idea if you plan to carry out renovations that will increase the value of the house. You can then sell or refinance the property.
The other time when you can apply for hard money loans is when you want to complete a large scale remodeling project on your property. It can be hard to qualify for a typical mortgage even with a good credit score. Fortunately, a hard money loan will enable you to renovate your house.
Private loans for real estate usually have a short approval process. Your loan can be approved within a period of a few weeks rather than thirty to forty five days, which is often the case for conventional mortgages. Getting a loan this quickly is great, even if the interest rate is higher. Lenders usually charge a high interest rate because they do not require borrowers to have a perfect credit score.
Hard money loans are a good option for borrowers who cannot qualify for a traditional mortgage because of a poor credit score, or self employed people who are unable to show proof of steady income. The property acts as security for the loan. Therefore, it is possible for a person to qualify for a loan if the property can be sold at a profit.
The repayment period for hard money loans is much shorter than that of conventional mortgages. The reason for this is that the lenders seek to get quick returns on the money they have loaned out. The loans are set up to be repaid within a few months or years.
It can be convenient to get a loan with a repayment period of 2 years or less. For example, investors can apply for it if they plan to sell the house within a short period. With such a loan, investors can buy a property and sell it for a profit.
You may also apply for a hard money loan if you expect to qualify for a conventional refinance a few months after acquiring the house. Applying for such a loan can also be a good idea if you plan to carry out renovations that will increase the value of the house. You can then sell or refinance the property.
The other time when you can apply for hard money loans is when you want to complete a large scale remodeling project on your property. It can be hard to qualify for a typical mortgage even with a good credit score. Fortunately, a hard money loan will enable you to renovate your house.
Private loans for real estate usually have a short approval process. Your loan can be approved within a period of a few weeks rather than thirty to forty five days, which is often the case for conventional mortgages. Getting a loan this quickly is great, even if the interest rate is higher. Lenders usually charge a high interest rate because they do not require borrowers to have a perfect credit score.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Residential Lending options in Atlanta he suggests you click here to learn more.
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