Trevor Cole Commercial Corp., Inc. specializes in closing hard money nonconforming loans. These loans do not fit neatly into traditional guidelines and are often characterized by applicants’ low FICO credit scores. In addition to providing nonconforming and conventional loans, Trevor Cole Commercial Corp. offers hard money loans. Hard money loans are often seen in the real estate market. Their short-term nature makes them a great option for borrowers who need extra funds to fix and flip their home. However, they can also be used for other purposes. Most hard money lenders focus on the collateral presented by the borrower rather than the person’s income or credit history. The impact that credit scores have on the approval of hard money loan is part of what makes this type of funding so appealing. Borrowers with low credit scores are often approved for a hard money loan, thus increasing the overall approval rate of hard money loans. Further, since these loans often do not rely on a borrower’s credit score or income, they are often approved faster than traditional loans, and offer borrowers greater flexibility when it comes to the loan’s terms. Despite their many benefits, hard money loans are not for everyone or for every situation. Interest rates often can be up to 10 percentage points higher compared to the rates for conventional loans. This can dramatically increase the costs of borrowing. The origination fees, closing costs, and loan-servicing fees also increase the overall cost of a hard money loan. Beyond that, most hard money loans are short-term, and have a brief repayment period of up to 12 months.
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Trevor Cole Commercial Corp., Inc., a New York-based business, provides commercial customers around the nation with different types of loans. Through Trevor Cole Commercial Corp., clients can obtain everything from conventional commercial loans and private loans to SBA loans. Backed by the U.S. Small Business Administration, SBA loans provide additional financing to small business owners while offering relatively low interest rates, to meet loan sizes and favorable repayment terms. Following are several criteria needed to qualify for this SBA loan: In general, banks and other SBA lenders will not award you with a loan unless you have been in business for at least two years. Because of this requirement, you may be turned down if you are a startup. In addition, if your business has been rejected for a private loan in the past before applying for an SBA loan, you have a good credit score While lenders may grant you a different type of loan if you have a personal credit score below 600, you may not be able to get an SBA loan. SBA loans usually require good personal credit scores, along with any excellent business credit scores, before they are granted. The federal government defines small businesses based on average annual income, number of employees, and other factors depending on the industry and state you are in. Normally, these numbers are contingent on minimum of $100,000 in annual revenue and no more than 500 employees. While there are exceptions, in most cases your business must meet the above definitions before being considered for an SBA loan. |
AuthorTrevor Cole Commercial Corporation of New York City specializes in procuring funding for large real estate projects, including multifamily properties and office buildings across the nation. Archives
May 2022
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