Hard Money Lenders at Cleveland Ohio Mortgage
Definition – A hard money lender lends short term cash that is basically an equity driven loan. Some hard money lenders these days are now checking credits and have guidelines other than just the equity in the home. Most hard money loans need to be under 65% of the after repair value. These loans are mainly used for a quick aquisition and rehab costs on a home. These loans can also be used to bail yourself out of a foreclosure.
Advantages – A true hard money lender will not use your credit score or verify income. They only care about what the house is worth and how much equity is / will be in the house when all is said and done. They tend to have quick closings and are great if you are a real estate investor that needs fast cash for a purchase or a flip.
Disadvantages – The loans are extremely expensive. Hard money should be a last resort. Look for private investors, use your own cash, or take a home equity loan out on your own home before you resort to using hard money. They tend to have 6-12 points charged which are usually wrapped up in the loan and they also have very high interest rates (12-18%). They are very short term loans also, usually 3-9 months and some have prepayment penalties on them so you will have to pay the high interest for the full term of the loan. You may be able to pay them off early, but you may have to pay the interest for the entire term.
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Some of our hard money lenders service Ohio in the following areas and more: Canton, Cincinnati, Columbus, Cleveland, Akron, Toledo, Dayton, Hamilton, Lima and Youngstown |
