Mainstream banks impose very stringent requirements for anyone applying for a personal loan. Credit history tends to be the main let-down for the majority of bank loan applicants since the majority of financing institutions require a flawless credit history. The implication is that a late payment on a past loan can be sufficient grounds to disqualify your application.
Other financing bodies, in addition to good credit, require you to have a valid cash flow record accompanied by viable future earning trajectories. Simply put, banks want you to prove that you can pay them back. Most banks won’t consider giving you any loan if you are not salaried. On the other hand, commercial banks will require you to prove that you are a trustworthy individual and are not planning to default on a loan. Finally, you are required to pay hefty monthly installments if your loan application goes through.
The above reasons are why a vast majority of people are choosing to seek financing from hard money lenders. Currently, there are over 50 hard money lenders operating within Atlanta, GA alone. Here’s what you should know about hard money lenders in Georgia.
Understanding Hard Money Lending
Hard money lending, or financing, refers to loans that rely on real estate property as the primary collateral. This fact puts hard money loans into the category of real estate loans. These loans are not offered by banks but by individuals or companies with real estate interests. This case-by-case basis makes it possible to negotiate the terms of a hard money loan in its entirety.
The prime requirement for a loan is the ownership of property. The implication is that you do not have to worry that bad credit history will disqualify you from receiving a hard money loan. Furthermore, there is a hard money loan option that does not require prior ownership of property.
Hard Money Loan Options
A hard money lender will offer several loan options to a prospective client. The standard loan options offered by the best hard money lenders in Georgia include:
- Hard money loans on a property already owned by a client
- Hard money loans on a property that a client wants to purchase
- Hard money financing for renovation work
- Hard money financing for a construction project
- Hard money loans on a vacant piece of land
- Hard money loans on rental property owned by a client
Hard money loans distinguish themselves from other loans due to their quick approval rates. In fact, most lenders approve hard money loans the very moment ownership of property is verified.
Uses of a Hard Money Loan
The most common uses of hard money loans revolve around renovation work on existing buildings. It is worth noting that a hard money lender will restrict the use of their loan to buildings on the particular property, acting as collateral.
Another major use of this type of loan is the construction of new structures on a vacant piece of land. The undeveloped land is usually the collateral for the loan. The final use of hard money loans is in the acquisition of real estate property. In this last application of the loan, a hard money lender requires that the prospective client is in the final stage of the actual purchase of said land.
Rely on Hard Money Georgia Today
Hard money loans are quickly becoming a viable alternative to bank loans and other mainstream financing options. The key features linked to the increasing popularity of hard money loans are quick approval times and non-restrictive requirements. When you’re ready to invest in a new real estate project, rely on Hard Money Georgia for the information you need.