A hard money loan is generally used by business owners and consumers. This isn’t necessarily specific to business financing. A hard money loan can simply be defined as asset-based loans backed by the value of a form of asset or collateral.
When seeking to contact a hard money lender for a loan, it is essential to understand the different types of loans and weigh the benefits of receiving this form of financing. It is vital to ensure that individuals know exactly what they are getting into.
The common types of hard money loans include:
• Mortgage refinancing.
This type of hard money loan pays off single or multiple loans which are secured against property. A homeowner can roll the costs of the new loan into a principle balance or can pay the costs of the new loan from the borrower’s pocket, and can refinance without receiving any of the proceeds.
• Equity loans.
Home equity loans are funded fairly and quickly and are a subordinate for a single equity loan which falls into second or third position. However, borrowers cannot obtain a home equity loan from all 50 states.
• Bridge loans.
These are used by sellers who seek to purchase a new home before selling an existing one but require the money from the current house. Bridge loans are more often in seller’s markets than buyer’s markets.
Understanding a few of the different types of loans before acquiring a loan for oneself is essential to make the right choice. Selecting an efficient and reliable place for hard money loans Franklin would be able to provide individuals with finances required.
BridgeWell Capital is the most trusted name in private money lending in the area and ensures clients would benefit through being offered with the lowest down payments, super fast approval and funding, and no hassles for their financing needs.