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.
2 Comments
8/4/2022 07:39:45 am
For those who are not able to secure traditional bank financing either because of bad credit or maybe because of the condition of the property, are able to qualify for hard money loans since the “ARV” of the property the loan is being taken out against is a critical factor in deciding to make a hard money loan. In other words if you are able to present a good investment opportunity, chances are you will get the money you need to close on your deal.
Reply
6/18/2023 07:20:16 am
I appreciate you mentioning that lenders frequently grant hard money loans to clients with low credit ratings, which raises the total approval rate for hard money loans. According to my mom, she wants to purchase new real estate as an investment. I'll advise her to seek assistance from a financial investing professional.
Reply
Leave a Reply. |
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
Categories
All
|