Commercial Lending Services

Hard Money Loans Requirements

Conventional Lenders and Hard Money Lenders actually have surprisingly similar loan requirements. Both types of lenders rely heavily on the loan to value ratio, however, one con for conventional lenders is that they also go through borrowers’ personal financials including credit scores. While this may be a pro for hard money lenders as they do not ask for financials and credit scores, this extra security for conventional lenders allows them to typically lend up to a higher loan to value ratio than a hard money lender.

Timing

If you are looking to close a deal quickly, look no further than a hard money lender. They specialize in speed and can generally get deals closed in 30 days or less whereas a conventional lender needs at least 60 days to be able to close. A pro for hard money lenders.

Flexibility

As one might imagine, conventional lenders are governed by much stricter federal and state laws, as well as their corporate governance. We all know the saying, “think outside the box,” but this is exactly what a conventional lender cannot do. They work within specific boxes with specific criteria and the loans they do must be able …