Hard Money Loans & Lenders in Sacramento, CA
Need a hard money loan in Sacramento? Before you sign on the first dotted line you see, learn more about what this lending mechanism is as well as the options that will be best for you.
WHY CALIFORNIA HARD MONEY DIRECT IS THE BEST
Here in the Golden State, our real estate market is incredibly liquid at this time. As a result, competition among lenders is fierce, and it can be difficult for borrowers to wade through the field to find the best choice. What you need is a lender with a proven track record of success, a company that has been providing hard money loans to Sacramento real estate investors and consumers for several years. At California Hard Money Direct, we offer a rapid approval process that usually happens in a matter of minutes, affordable rates and a lending procedure that involves no middle man. Whether you want to buy a property as a fix-and-flip, make improvements on an existing one or develop land, we’re here for you.
HOW DOES A HARD MONEY LOAN WORK?
When someone lends you money, they want to be reasonably sure that you will pay them back. In traditional soft money loans, they do so by looking at your credit and borrowing history as well as your income. If your debt-to-income ratio is satisfactory, you will generally be approved although the process is often slow and the paperwork can be daunting. Payments might be spread over as many as 30 years.
By contrast, hard money lenders use collateral such as the value of your property to secure the loan. As a result, they are not as concerned about your income or credit history. This is because they will simply take over your property if you fail to repay on time. In general, hard money loans last anywhere from one to five years. You make payments on the interest monthly, with a balloon payment on the principal at the end of the loan.
WHY HARD MONEY LOANS ARE THE PREFERRED FINANCING OPTION
Because hard money loans are perceived as more risky, their rates are higher than those of traditional loans. Nevertheless, there are several good reasons why borrowers choose this lending vehicle. They include the following:
• Speed. Because you are using collateral to secure the loan, the lender does not need to spend as much time carefully scrutinizing every element of your income and credit history. Consequently, it takes much less time to be approved for a hard money loan. If you are an investor who is in hot pursuit of a sought-after property or if you need funds to fix and flip a house quickly, hard money lending might be right for you.
• Flexibility. Hard money loans are given by private investors as opposed to traditional banks. Instead of using the standard underwriting process, hard money lenders treat each deal individually. That means that you can have additional leeway in your agreement.
• Approval. A hard money lender will often say “yes” when a bank says “no” to your loan request. The lender is mostly focused on the appraised value of the property in question. Although they may look briefly at your credit and personal financial history, these will not be the most important factors in their decision.
HOW TO EARN APPROVAL FOR A CALIFORNIA HARD MONEY LOAN
If you need financing quickly and you have assets that can be used as security such as residential or commercial property or land, you might be an excellent candidate for a hard money loan in Sacramento. Although this type of financial arrangement requires less paperwork, you will still need to provide the following:
• Documentation of the appraised property value and inspection;
• Estimate of how much it will cost to renovate or rehabilitate the property;
• Estimate of the value of the property after improvement;
• Proof of insurance to be presented at the closing;
• Documentation of your personal financial and credit history.
California Hard Money Direct is your one-stop source to obtain the finances you need to clinch that deal or flip that house. When you need money fast with flexibility and integrity, look no further. California Hard Money Direct is here for you.