What is The Requirement & Timeframe for Hard Money Loan Approval?

[Sacha Ferrandi]

Private money or  are loans secured by real estate that are funded by private parties and are typically offered at higher interest rates than FDIC insured bank. As such, the hard money loan process and underwriting guidelines are less strict and time consuming than a traditional bank or financial institution. More often than not, the reason why borrowers seek hard money loans is because they don't have the luxury of time to wait for financing from more conventional sources. Please call us at 888.334.6636 or contact us now to know more about hard money loans.

Requirements:

Depending on the type of hard money lender, the due diligence items required from the borrower can vary significantly. For example, it is well known that banks or other conventional lenders can require documentation that most of the general public feel is “overkill” and tedious. In addition, traditional lending sources quite often require documents, or updates, all the way up to the actual closing of the loan. Most importantly, banks are credit driven and are primarily concerned with your history as a borrower. On the other hand, a hard money lender like Source Capital Funding is well-known for requiring much less documentation and will often only need the information to be provided at one time. As a bank looks closely at the borrower’s credit, financial conditions and property being undertaken as collateral for a loan, Source Capital focuses primarily on the equity in the property while factors like poor credit, bankruptcy, foreclosure or other financial problems are less heavily weighted.

Timeframes:

Hard money lenders like Source Capital Funding can often have loan approvals within 48 hours and fund loans within 5-7 business days because of less documentation requirements and a quick underwriting process. In some cases, a private money lender can even fund in a matter of hours. As mentioned earlier, with the myriad of requirements to qualify for a traditional bank loan and the fact that there are a number of individuals involved in the loan approval process, the timeframe to fund can be up to as much as 90 days.

For more info, please contact us today or call our hard money lenders in California or Arizona, Minnesota or Oregon now at 888.334.6636.