Commercial Real Estate Advisor

Hard Money Loans – Myths vs. Facts

In our new series of blogs, we’re going to delve into the most common myths and facts behind hard money loans and how they work. Our goal is to help you dispel the myths and provide the information that you need to make an educated decision about your lending options. The first topic is one of the most common misconceptions about hard money lending:

Only People with Bad Credit Get Hard Money Loans

Because the terms of a hard money loan are more flexible, they may be a better choice for people who have less-than-perfect credit. However, there are a number of different people who can benefit from the quick and flexible funds offered by a hard money loan, including those whose credit is perfectly acceptable for other types of financing. In fact, on most lists of reasons to consider hard money financing, credit scores are at the bottom.

Who Else Can Benefit from Hard Money Loans?

In order to better understand just who can benefit from these loans, it helps to explore and understand their most common uses. These are circumstantial loans, after all, and it will be important to determine whether or not this is a good funding choice based on the options available and your specific lending needs. The most common use of this type of loan is for real estate investing, and there are even some hard money lenders that won’t offer them to traditional consumers, so bad credit is definitely not the basis of this type of lending.

If you need money quickly, hard money loans might be available. Because of the nature of these loans, they are funded a lot faster than a traditional loan, which means you can get cash quick or make sure that you don’t miss a great investment deal even if you don’t have the funds on hand. Just make sure that you find a lender, like H&O Capital Funding, that has the knowhow and experience to close deals quickly.

The Bottom Line

Hard money loans aren’t just for bad credit. They’re also great for:

  • Real estate investing
  • Flexible lending options
  • Alternatives to traditional funding

The best way to decide if this is the right financing option for you is to learn more about hard money lending and what it offers. Keep up with our Myths vs. Facts series to learn more.

H&O Capital Funding has helped countless real estate buyers, sellers, lessees and lessors achieve their goals. Our legacy is unwavering commitment to the communities we serve. Houlihan & O’Malley Commercial Real Estate Services specializes in four distinct, yet overlapping, areas of business: Commercial Brokerage services, Private Mortgage services, Appraisal Services and Advisory services.

For more information on loans that we offer, visit our website.

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