La Presa Hard Money Lenders

A: Each month, the interest is added to your loan balance. You only repay the loan when you sell the house or when the loan becomes due (such as after you pass away).

A: Hard money is a private loan on real estate collateralized by the property itself. Compared to a typical mortgage from a bank, the process of getting approved places the majority of weight on the value of the property and its current equity rather than on highly detailed income verification documents. In La Presa, borrowers frequently rely on hard money loans when they need financing that adapts to their actual situation. They cannot force their financial records to fit the rigid underwriting rules of banks, especially when they are in need of quick access to the funds or if they are in an unusual financial circumstance that a traditional lender would not have the ability to accommodate.

A: If you get a hard money loan, it will likely close much faster than a traditional bank mortgage, as the approval will be centered on the equity value of the property rather than your finances and credit history. Timing will depend on factors like how fast the appraisal goes and a look at the title report, which is why many La Presa borrowers turn to private money lending.  They don’t want delays, and everything goes faster.

A: Interest rates and terms on hard money loans are determined by the property type, how much equity there is, and how the loan agreement is written. These loan agreements are usually of a shorter duration than conventional bank mortgages and are based on the amount of collateral in the property. Because hard money loans offer speed and a lot more flexibility, rates are different than standard long-term bank loans. In most cases, loan approval depends on the property’s value, the loan-to-value ratio, and a good repayment schedule, not a stack of documents verifying the borrower’s income and credit history.

A: Yes, it’s highly likely. Hard money loans are commonly sought when a borrower has an inconsistent income, is self-employed, is a seasonal worker, or has difficulty providing the documents in the proper bank format. Since loan approval is primarily granted on the property’s equity and the overall strength of the loan agreement, credit challenges may be overcome. Eligibility totally depends on the equity value of the property and the loan agreement. This is why a lot of borrowers look into hard money loans. It’s because their situation doesn’t fit conventional mortgage guidelines, perhaps they have a low credit score or unconventional sources of income that traditional banks tend to shy away from.

A: Borrowers are drawn to Independent Lending because we have a very straightforward process, plus we make a point of discussing everything openly and clearly throughout.  We take time to thoroughly explain every option and expectation while structuring the financing around the needs of the borrower and their property. If you are looking for a responsive team with a practical lending approach, especially if you’re pressed for time, Independent Lending is your best option.