Let’s look at the difference between traditional or conventional Lenders, such as Banks and other in-house lending institutions and a Hard Money Lender:
Interest Rates – Conventional interest rates are generally lower than hard money rates, but if a hard money loan makes the difference between no loan and paying a little more until you qualify, it can be a huge benefit.
Upfront Fees – There are no upfront fees for a hard money loan.
Loan Terms – Conventional loans may have loan terms that extend to 30 years; Depending on the program, Hard money loan terms are 12 months, 2 years, 3 years and for primary residences can be for longer.
Borrower’s Credit – The borrower’s credit is not a stumbling block for hard money lenders. We concern ourselves with the equity in the property and your ability to make the mortgage payment, not a FICO score.
Time to Close – Hard money loans can close in less than 1 week if rush! Conventional loans can take up to 60-90 days because of the documentation and inspections required.
Our investors consider these loans a safe investment knowing that, besides the mortgage lien, these properties are backed by title and hazard policies.
Is There a Secret to Getting My Loan Approved?
If you have a decent down payment or existing equity and an ability to repay the loan (a source of income) then you are in a great position to get a hard money loan approved and your deal closed in record time.
Sun Pacific Mortgage has been financing properties as purchases and refinances for over 30 years, and we would welcome an opportunity to assist with yours or a client’s loan scenario. Call us today at 707-523-2099. We are happy to help!