Hard Money Loan – Borrowing Made Easy

When you require funds in urgency and cannot wait for weeks to search for lenders for traditional loans, your best option is to go for a Hard Money Loan. There are tons of loans available in the market today for real – estate investors, but one common type of loan is hard money loan. Such loan allows investors to buy and fix investment property and if used correctly it can be definitely put money in your pockets.

A hard money loan is a specific type of borrowing in which a borrower receives loans based on the value of a specific commercial real estate. The lender approves the loan based on the equity in the assets. The ease for getting such loans has made the interest rates go higher than other categories of loans. Unlike traditional money lenders in hard money loan, the lenders do not spend amount and time in verifying the borrowers’ credentials like his income, tax history or credit history. The lenders borrow the amount totally based on the value of the real assets. Hard money loan is funded very quickly and you do not have to wait for weeks. There is considerable flexibility in the loan terms which can vary from 6 months – 20 years.

Hard money lenders restrict their lending to not more than 70 percent of their assessed value of a real estate property. This shows the rest of 30 percent is your goes to your down payment or equity. There are many high costs involved in hard money loan which makes the loan very expensive. The lenders always look for a strong return on their investment and charge you rate of interest in between 10 – 18 percent. There is also another major disadvantage as your loan will not be reported to the credit bureaus. This means that even if you pay your loan in a timely manner, it will not improve your credit report in any sense. There is also the facility of foreclosing properties with delinquent payments through hard money lending. These types of issues are generally avoided by traditional banks.

Thus hard money loan gives you the benefit of a large amount of funding without considering your financial income or credit history. You just have to have a real estate property and have enough of equity assets to fill out the application for such a loan. If you solely think that you can get a benefit from hard money lending, then do your research and know your lender well before signing on any documents for the loan.

Home loan

Everybody wants to own a home,once you have decided to take a home the very next thing that comes to your mind is to take a loan,and when it comes to loan ,many questions arises like from where to take a loan? how to take a loan? how to choose between fixed rate and floating rate?

This is the place ,where we need to think twice while coming to a proper decision .because there are lot of option's in the market and we need to choose among the best.

Home loan is no long a far away,you don't have to run away to get it approved for yourself ,it has been simplyfied a lot. There will be a lot of plans,advertisement,easy installment which will be tempting you take a loan now and then.and the banking and finance industry are also there to help you out according to your desire.

The criteria and eligibility for taking loan has also been rationalized and any one can plan to take a home loan by fulfilling the bottom lines.

But then the question comes in mind that whether you should take a home loan or not because it is a long term assessment and you should not fall in debt.

I will advice you to keep it below 25% of your present net income,because you should have some reserve for any unforeseen situation,it may be healthcare,financial, or any other expenses.

Don't take any decision based upon estimation on future project.as the home loan is a long term liability in this period your income may keep on rising,but so do your liabilities and expenses and may be the vice-verse. what will you do then?always keep all this thing in mind.

You should keep a balance between liabilities,expenses and income,and also remain stress free of the burden of EMI.