Hard Money Loans & Lenders in Contra Costa, CA
Need a hard money loan in Contra Costa? In today’s liquid real estate market, you have plenty of choices when it comes to lenders. Choose californiahardmoneydirect.net to give you the capital you need to seal that deal or flip that piece of property.
WHY CALIFORNIA HARD MONEY DIRECT IS YOUR BEST CHOICE
If the bank says “no” to your request for a traditional loan, don’t give up. There is another avenue that will enable you to get the funds you need. Best of all, it’s fast and affordable. California Hard Money Direct has a solid track record of furnishing borrowers just like you with the money they need at rates they can afford. We can give you an approval within a day, not after weeks of waiting for word from a traditional financial institution. Furthermore, we are a direct lender who works hand in hand with private investors who understand real estate and can be flexible when it comes to an application we’re excited about. There are all kinds of good reasons to find out more about California Hard Money Direct.
HOW DOES A HARD MONEY LOAN WORK?
It is important to understand the difference between a soft and a hard money loan. A soft money loan is similar to a standard mortgage. As a borrower, you need to prove that you have an adequate income, a good credit score and a sufficient debt-to-income ratio in order to be considered a candidate for the loan. Because of this prerequisite information, you are not expected to provide collateral, interest is lower and you can have sometimes up to 30 years to repay. By contrast, your property is your collateral in a hard money loan. The amount you can receive in funds depends on the value of that residential, commercial or land property. There is less emphasis placed by the lender on your credit score, income or history, interest rates are higher and the payment term usually ends in as little as a year to five years. You are expected to make monthly payments on the interest, with a balloon payment on the principal at the end. Many borrowers find that they can get a loan from a traditional bank as they near the end of the hard money loan to help with the large payment.
WHY HARD MONEY LOANS ARE THE PREFERRED FINANCING OPTION
Hard money loans are ideal for borrowers who need money quickly for any number of reasons. Perhaps you are looking to fix and flip a piece of property in a matter of months in a competitive market. Or maybe you wish to embark on a time-sensitive construction project so that you can ready your business for the holidays. Maybe you have experienced a recent bankruptcy or foreclosure that has caused traditional lenders to become squeamish about giving you a loan. If you fall into any of these categories, a hard money loan might be a perfect vehicle for you. Just be sure to ensure your personal payment guarantee since delinquent payments can be taken from your own assets or lead to an unpleasant court battle.
HOW TO EARN APPROVAL FOR A CALIFORNIA HARD MONEY LOAN
Needless to say, hard money lenders don’t simply give money away. They want to be sure that you are a viable candidate who poses the minimum risk. For that reason, they do require you to do some paperwork although it is minimal compared to the hoops you need to jump through for a traditional loan. Expect to be asked for the following:
• Property deed;
• Documentation of appraised property value and inspection;
• Estimate of how much it will cost to rehabilitate the property;
• Estimate of the property value after repairs have been made;
• Credit and financial information;
• Proof of insurance to be provided at closing.
To make the process go more smoothly, you are often able to fill out a fast and easy pre-approval form online. It’s one of the quickest ways to learn whether you will be accepted for a hard money loan in Contra Costa.