If you're in the marketplace for a loan, you may have come across the term "hard money" lending. Don't let the name fool you; hard money lending is far from "hard"!
What is hard money lending?
Hard money refers to a type of loan in which collateral is the main criteria for the lender. In other words, a hard money lender typically focuses on the borrower's collateral rather than other more traditional factors such as the borrower's credit score, income, and debt-to-income ratio. This practice is advantageous for both the lender and the borrower. For the lender, this kind of lending is relatively secure (at least compared to other kinds of loans) and for the borrower, these loans provide much-needed capital that other investors and banks, for a variety of reasons, aren't willing to provide.
What is hard money lending?
Hard money refers to a type of loan in which collateral is the main criteria for the lender. In other words, a hard money lender typically focuses on the borrower's collateral rather than other more traditional factors such as the borrower's credit score, income, and debt-to-income ratio. This practice is advantageous for both the lender and the borrower. For the lender, this kind of lending is relatively secure (at least compared to other kinds of loans) and for the borrower, these loans provide much-needed capital that other investors and banks, for a variety of reasons, aren't willing to provide.
How does this type of lending work?
The process can get quite complicated (as with any kind of loan), but to put it simply: the lender requires the borrower to put up collateral in exchange for the loan. Hard money collateral can be a number of things: commercial or residential real estate, automobiles, jewelry, airplanes, yachts, etc. In addition, the value of the collateral is typically more than the loan itself; in some cases, collateral must only carry a value equal to the loan amount. These loans typically do not have the same prerequisites of other loans. Borrowers with less-than-stellar credit scores or income levels are ideal candidates for hard money loans. These loans are directly between the borrower and the lender; intermediaries are rarely used.
The loans can be used by businesses, as well as by individuals. Commercial real estate, for example, is an industry that takes advantage of hard money lending. The collateral businesses provide may be real estate, office space, or other business/corporate assets. The loans can be issued to either the company itself, or to an individual who represents a company.
Some business fields that are typically eligible for hard money loans include:
• Automotive
• Industrial
• Land
• Medical
• Office Complexes/Condos
• Retail
• Storage
• Residential Buildings
• Assisted Living
• Construction
Hard money loans for individuals and businesses can be an important aspect of financial health. At Green Knight Funding, borrowers can take solace in knowing that their loans will be handled by a dedicated team, comprised of investors, attorneys, appraisers, and specialists that know just what to do with their assets. Lending can be a complicated and risky business. The professionals at Green Knight Funding are fully aware of this, which is why they will work tirelessly to provide you with the best hard money loan possible. If you're looking for the right loan to fit your needs, consider hard money lending.
The process can get quite complicated (as with any kind of loan), but to put it simply: the lender requires the borrower to put up collateral in exchange for the loan. Hard money collateral can be a number of things: commercial or residential real estate, automobiles, jewelry, airplanes, yachts, etc. In addition, the value of the collateral is typically more than the loan itself; in some cases, collateral must only carry a value equal to the loan amount. These loans typically do not have the same prerequisites of other loans. Borrowers with less-than-stellar credit scores or income levels are ideal candidates for hard money loans. These loans are directly between the borrower and the lender; intermediaries are rarely used.
The loans can be used by businesses, as well as by individuals. Commercial real estate, for example, is an industry that takes advantage of hard money lending. The collateral businesses provide may be real estate, office space, or other business/corporate assets. The loans can be issued to either the company itself, or to an individual who represents a company.
Some business fields that are typically eligible for hard money loans include:
• Automotive
• Industrial
• Land
• Medical
• Office Complexes/Condos
• Retail
• Storage
• Residential Buildings
• Assisted Living
• Construction
Hard money loans for individuals and businesses can be an important aspect of financial health. At Green Knight Funding, borrowers can take solace in knowing that their loans will be handled by a dedicated team, comprised of investors, attorneys, appraisers, and specialists that know just what to do with their assets. Lending can be a complicated and risky business. The professionals at Green Knight Funding are fully aware of this, which is why they will work tirelessly to provide you with the best hard money loan possible. If you're looking for the right loan to fit your needs, consider hard money lending.