San Diego hard money loans are nonconforming loans, unlike the type of loans from conventional bank financing. They are funded by private individuals like us, and requirements vary from lender to lender, however most private hard money lenders are much more concerned with the collateral and equity protection, than credit scores. Rates are typically higher than conventional financing, however funding times are usually much faster and the loan criteria and repayment terms can be tailored to the individual situation.
Hard Money Loans are best suited to capitalize on your time critical real estate opportunities, when you need a loan quickly, or when you can’t get credit by normal conventional means. It is a great alternative for fast short term financing. If you have A+ credit, can verify income and can wait at least 20-30 days for the loan, a direct lender is a much better option.
Funding a Hard Money Loan
Typically it takes approximately 10 days for us to fund a loan. Compare this to typical ‘big bank’ with funding times of 6-8 weeks. We can fund much faster because our hard money loans are funded either directly with our own funds or by other private investors, and because there is much less paperwork and red tape involved in funding the loan and decisions are made quickly. There is no loan review by committee.
Credit is not an issue, but having a plan on how you will repay the loan is required, and it should make sense. Our funding criteria is based on equity in the property, not credit. We also make loans to foreign nationals and entities with no credit history.
An appraisal is absolutely necessary. If you already have an appraisal (even an old appraisal), keep it handy, because it will allow us to get up to speed on the features of your property faster, however we will require an independent appraisal be done on the subject property.