There are a number of reasons why investors might consider taking out a hard money loan instead of a conventional mortgage loan. Let’s discuss some of those reasons and then look at how hard money loans differ from conventional.

• If you can’t apply for a conventional loan due to credit issues, but you have collateral to offer. 

• If you are wanting to buy a property but are competing against cash offers.

• If you are looking to buy land for investment or to finish a construction project.

• If you need financing faster than a conventional loan can offer.

• If you plan to fix and flip a property and only need short-term financing until you can sell the property.

You can probably already tell from this list that hard money loans tend to close faster than conventional loans and are for shorter terms. Shorter term loans equate to higher interest rates. When underwriting a hard money loan, the lender will weigh the value of the property or the after repair/completed value more heavily than your credit score. Hard money loans usually come from private lenders rather than banks. And finally, hard money loans can have higher fees than conventional loans.

How To Get a Hard Money Loan?

There are pros and cons to hard money loans, so working with a commercial mortgage broker will help save you a great deal of time. Simple Commercial Capital is here to help you navigate all of the commercial loan options available. Look through the loan programs found at the top of our page. Each program has a brief description and loan parameters. If one of the loan programs fits your needs click the Apply Now button to start the application process or call us at 1-866-554-1120 to discuss your options in more detail. Our goal is to make this process as simple as possible for you.