Banks can be unforgiving. A borrower may have real estate equity, a strong investment idea, or a clear plan, but still run into problems because of credit history, self employment, past foreclosure, bankruptcy, short sale, or lack of traditional income paperwork.
That does not always mean the deal is dead. It may mean the borrower needs a different kind of lender.
Brad Loans by eMortgage offers hard money loans in Arizona, including options for borrowers who may not qualify through a traditional bank. Every loan is reviewed individually, but hard money can be useful when the property and collateral are stronger than the borrower’s credit profile.
Why Banks Say No
Traditional lenders usually follow strict rules. They look closely at credit scores, tax returns, employment history, debt ratios, reserves, and property condition. That process works for many borrowers, but not all of them.
A self employed borrower may make money but have complicated tax returns. An investor may want to buy a property that needs repairs. A homeowner may have equity but poor credit after a difficult few years. A business owner may need money quickly and have real estate available as collateral.
A bank may still say no.
How Hard Money Loans Work
Hard money loans are real estate backed loans. That means the property is a central part of the approval process. Instead of relying only on credit and income paperwork, the lender looks at the real estate, the equity, the borrower’s plan, and the overall risk of the deal.
Brad Loans states that bad credit, no credit, discharged bankruptcy, short sale, foreclosure, and non citizen borrower situations may still be considered. That is one reason hard money lending can be helpful for borrowers who have been turned down elsewhere.
It is still a serious loan. Borrowers should understand the rates, fees, loan term, monthly payment, and exit plan before moving forward.
When A Hard Money Loan May Help
A hard money loan may help with a fix and flip property, an investment purchase, a refinance, a bridge loan, a business loan secured by real estate, or a time sensitive real estate opportunity.
For example, an investor may need to close quickly on a property that needs repairs. A homeowner may need short term financing while working toward a longer term solution. A business borrower may own real estate and need capital for a specific purpose.
The common thread is real estate collateral.
Ask Questions Before Applying
Before applying, borrowers should ask how much they may qualify for, what property value is being used, what fees apply, how long the loan term is, and what happens if the exit plan takes longer than expected.
Good hard money lending should be clear from the start. Brad Loans encourages borrowers to call and discuss their specific loan options with Brad and his team.
Phoenix Hard Money Real Estate Loans
If you’re interested in getting involved with real estate investing and need the capital to purchase properties hard money is a great way to get started. Brad Loans has extensive experience in both real estate investing and hard money lending and is proud to offer Phoenix Valley real estate investors the financing they need. It is easy to get started applying for hard money loan and Brad Loans is able to work with clients with bad credit and no credit. We are your source for hard money when traditional banks say no. Read more about Brad Loan’s hard money loan programs or get started fill out our hard money loan application or give us a call to ask questions at 602-999-9499.
