It can be quite a challenge to look for a way to finance any business, including real estate. One way of doing it is by applying for a hard money loan from lenders in FL. Hard money loans are interest-only mortgages popular among investors to help them either rehab and/or purchase a specific distressed property. Here are a few other reasons why most real estate investors often choose hard money loan:
Fast and easy process
You only have to go through a few steps when applying for a hard money loan. Since you’ll only be working with only one lender or a few groups of lenders, the process will be much shorter than usual. Since the real estate property is the only asset that’s backing the mortgage application, lenders will only be interested in the value that they see in the property.
A flexible loan application process
Hard money mortgage application is also more flexible compared with traditional mortgage agreements. According to The Balance, lenders assess every deal individually instead of using a standardized underwriting process.
You don’t need to have a perfect credit score
One of the very first things that typical lenders check is the applicant’s credit score. Based on an article posted on Landlordology, since hard money lenders often focus on the actual value of the property that’ll be used as the loan collateral, the applicant’s credit score doesn’t have much importance to the application. There are even a few lenders who won’t request for your credit rating. Hard money lenders often look at the loan-to-value ratios to assess how much you’ll be able to borrow.
It can be quite a challenge to find credible hard money lenders. You may want to reach out to any local real estate agent to get yourself started on your search. It’s always advisable to work with a direct equity lender to get the support that you need when it comes to the application process.