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Everything You Need to Know About Getting a Hard Money Loan Brooklyn
As you come across the terms, “hard money loan” what hits your head? Do you remember shady money lenders who conduct their businesses at sky high rates and in dark roads? Well, Hard Money Loans Brooklyn in not a shade industry. A lot of bad apples have made the business venture appear bad. However, there are good lenders who want to help you in the long run! With this being said, here is a quick walk through bridge and hard money loans Brooklyn.
What are Hard Money Loans?
By definition, Hard Money Loans Brooklyn are short term monetary benefits secured by real estates. These loans are funded directly by private investors (or a group of investors). When compared against conventional credit unions and banks, these lenders work with free rules and policies. The hard money loans are meant for 12 months. Indeed, you can extend the loans to terms of 2-5 years too! With respect to repayments, you can opt for monthly installments or pay only the interest. In this case, you should make a balloon payment in the end.
Factors Influencing Hard Money Loans
The amount you are eligible to borrow depends on many factors. Most hard money lenders Brooklyn pay for the subject property’s value. This property should be owned by the borrower or he/she must be prepared to acquire it. It is quite interesting to note that bridge loan lenders in Brooklyn are not concerned about the borrower’s credit history. This means, borrowers who are not eligible for traditional loans will be able to obtain a hard money loan. As banks reject loan applications, hard money loan lenders approve them.
Properties and Loans
Hard money loans Brooklyn are offered to different types of properties. You can use money from hard money loans to buy different types of properties like industrial, residential, single family residential, land and commercial. Some lenders tend to expertise in specific properties. For example, they may provide land loans but not single family residential ones! Before you work with a hard money loan lender, you should figure out their services. You must ask the firm upfront if they do the loan you want. If no, you should figure out another lender for the deal.
A lot of bridge loan Brooklyn lenders don’t offer money for properties that are occupied by owners. This is because such properties come with many rules and regulations.