How Hard Money Loans are Different
First and foremost, a hard money loan is not like traditional loans. Unlike most other loan programs where you end up having to pass a rigorous credit history check and may even have to submit additional information like tax and work records, hard money loans are based on the value of the property or assets they are being used for. So, for instance, if you were purchasing a house with the intent of flipping and selling it, your Texas hard money loan would be backed by the value of the property as a whole. It is also worth noting that hard money loans tend to be short-term and may be worth up to between 85 to 90 percent of the property or asset value.
Who is a Hard Money Loan For?
It is important to understand that this type of loan is not going to be suitable for everyone. Nevertheless, those who are going to be best suited for taking out a hard money loan in Texas are those who need fast funds for a real estate investment and are able to pay the loan back within the agreed-upon terms (or are otherwise willing to forfeit personal assets or be taken to court). And while having a decent credit score is overall not that important for hard money loans, you are much more likely to get approved for one if you have never experienced bankruptcy or past loan defaults.
Taking the Next Step
Because hard money loans in Texas s are different from regular loans, we highly suggest that you take the time to do your research about both the loan program of your choice entails as well as hard money lender requirements in Texas. Be careful, however, as there are many “Texas hard money lenders” out there who try to take advantage of people by offering loans with unfavorable terms. But once you’ve decided that a hard money loan is the right course of action for you, it’s time to reach out to our loan experts to learn more about your specific options. While you will most likely have to allow for a check of your credit score, keep in mind that this will not play a significant role in your being approved for a hard money loan in Texas. No, the real importance here is that you reach reasonable terms with your lender and are able to repay your loan in accordance with the amount of time and the specific terms that are agreed upon. To learn more about hard money lenders in Texas give us a call!