hard money Lending..

[Tyree Edward]

Hi my name is Tyree,

Im really curious as to how hard money,and conventional loans work. I spoke with a lender last week and he is telling me, that my credit checked out ok and i can apply for FHA 203 loan. Meaning i can borrow the money and rehab money combined into one loan. Then im reading info about high interest rates with hard money, i guess im trying to find the right answer for me to do my, first deal.

Please help! newbie..

Thanks

Ty

[Nghi Le]

If you can get into a deal with a bank loan over a hard money loan, that's the way to go.  The rates and terms are simply better.

However, people use a hard money lender out of necessity because they either need to close fast, or they don't have the credit for a bank loan.  If you're flipping properties, hard money lending (or private money) is the standard.  If you're buying to hold, go for a bank loan if you can.