3 Main Hard Money Loan Requirements
How to Qualify for a Hard Money Loan
Many borrowers who haven’t previously used hard money are unclear about what is required to qualify for a hard money loan. Hard money loans for real estate have very few requirements when compared to traditional bank loans. Hard money loans are asset-based, which means the lender is primarily concerned with the value of the property and the borrower’s equity in the property. The larger the borrower’s equity, the safer the loan will be for the lender.
Hard money lenders will also require the borrower be strong enough financially and has the necessary cash reserves to pay the monthly loan payments and other responsibilities of the property. Some experience in real estate or a well-defined plan for the property will also be required by the lender.