All About Hard Money Loans in Brief
What are hard money loans? Hard money loans are loans that are funded by private investors instead of the traditional banks. They are also often referred to as private money loans. Such loans are provided on the basis of the value of property rather than the credit score or financial history of a borrower. Typically the loan amount is determined by the loan-to-value ratio (LTV) which means the loan amount is divided by the value of the property which is to be used as a security. Although California hard money loans are easier and faster to obtain compared to the more traditional bank loans, the borrower still has to go through an underwriting process and qualify for specific terms. Why to consider a hard money loan? Various scenarios may provide reasons for borrowers to opt for hard money loans instead of the conventional loans from the banks. A few are as follows – When you have a property investment deal in hand but you do not have ample time to go through a le