Redwood City 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: A hard money loan on real estate is one in which the loan is mostly secured by the value and equity in the property. Rather than loan approval based on volumes of documents verifying income or rigid credit requirements, approval is granted on the property’s collateral, along with the strength of the deal. Redwood City borrowers often turn to hard money property loans when they need more flexibility than a standard bank mortgage allows, when a quick closing is required, or if they cannot qualify for a traditional loan.

A: You will likely get funding on a hard money loan a lot faster than you would with a traditional mortgage since approval mainly focuses on the property you’re buying or refinancing, rather than an underwriting process. The timeline will depend on the appraisal and when it’s finished, as well as the title report. The reason why so many borrowers in Redwood City opt for a private money loan is that they’re faster and more efficient.

A: There are no set interest rates or terms on Redwood City hard money real estate loans because each one is different, based on the property’s type, its loan-to-value ratio, and the loan’s structure. These are usually short-term loans, mostly approved based on the value and equity in the property, rather than a lot of personal information. Since hard money loans are sought after for their speed and flexibility, interest rates are usually different than those of a long-term mortgage. Loan approval is typically based on the property’s condition, the borrower’s equity position, and the exit strategy.

A: Yes. You are not alone because a lot of Redwood City borrowers seek hard money loans because they know they don’t qualify for a traditional mortgage loan. Approval on these types of loans is largely based on the property’s equity and how the deal is structured. Therefore, people who work for themselves, who have a variable income, or those trying to rebuild their credit can often qualify. Each loan is considered on its own, with the property being the main focus.

A: Independent Lending is chosen because of our experience, streamlined lending approach, and our reputation for honesty and integrity. We clearly explain every option to borrowers and structure the loan according to their needs, including the timeline. We do our best to keep the process as simple as possible with full transparency from beginning to end.