Understanding 5 Common Hard Money Loans
Hard Money Loans
Hard money loans are a type of financing that is secured using real property. They are often more flexible than conventional loans and can prove an excellent financial tool for many borrowers. Hard money loans can be used for a variety of purposes. Understanding the most common types of hard money loans will help you to make better choices when you work with hard money lenders california.
- Investment Property Purchases
Compared to conventional loans through banks and credit unions, hard money loans can provide funding quickly. This makes them ideal for investment property purchases, especially when moving quickly can help you take advantage of an opportunity.
- Bridge Loans
Bridge loans are used as temporary funding while other financing is secured. For example, if you want to make a real estate deal but need funds for a down payment, a bridge loan may help. Similarly, if you are selling a property to fund another purchase, a bridge loan can help you buy the second property without needing to close on the property you are selling.
Hard money can be great for construction. You can use the equity in the land or another property to help fund the construction of a home or other property. In some cases, this can be converted into a conventional mortgage once the construction is complete.
- Home Improvement
If you want to make renovations or additions to your existing property, a home equity loan may help. This type of hard money loan uses the equity you own to provide capital for a wide range of purposes.
Refinancing your mortgage is a type of hard money loan. You use the property to borrow enough funds to pay off your existing mortgage and cover the costs of the new loan. This can help you reduce your interest rate.
Hard money loans have a lot to offer especially when you work with the best bridge loan lenders and hard money lenders. Fortunately, for hard money loans Los Angeles residents have some great options available.