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Hard Money and Fix & Flip Loans are two of the most popular programs that investors use for their real estate investments. Although they both are different programs, many industries believe them to be the same. At hard money loans, we hold years of expertise in catering to the funding need for small and large investors. <br><br>Whether you are looking to borrow hard money or Fix and Flip San Jose, our team of financers and investors will guide you from assisting to disbursal of loans. Call us at 1 (310) 666-8884. <br><br>https://bit.ly/2SkpjOB
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Fix and Flip Loans versus Hard Money Loans Hard Money and Fix & Flip Loans are two of the most popular programs that investors use for their real estate investments. Although they both are different programs, many industries believe them to be the same. At hard money loans, we hold years of expertise in catering to the funding need for small and large investors. No matter what type of loan you are looking for, we have long list of loan programs that are designed to meet all your small to large funding needs. Fix and flip loans are borrowed exclusively for residential real estate properties that you are looking to renovate and sell within a short period, typically 6 to 9 months from the purchase date. On the other hand, a hard money loan is an asset-based loan, which means the financing is based on the Loan to Value of the Asset. This blog features the key difference between Fix and Flip Loans and Hard Money Loans.
Fix and Flip Loans: Unlike hard money loans, fix and flip loans involve more underwriting guidelines and criteria and look at both the asset and the borrower. Fix & Flip Loans are usually sold on the aftermarket market and go through a full underwriting process with strict guidelines. For instance, Fix & Flip loans have a minimum FICO requirement. Also, the borrower can’t have late fines, foreclosure, judgments, or bankruptcy on their line of credit for the next 24-36 months. A Fix & Flip loan is a rehab loan that you can use to acquire a property and then receive the money to renovate that property in short term funding. You can contact us to help you close your loans quickly, efficiently, and professionally in no time. We can say that both the credits come from the same place, but underwriting is different.
Hard Money Loans: This kind of funding doesn’t have the same number of confinements as one would might suspect thinking about that it’s merely money, so no more stressing over liquidations, abandonments, foreclosures, and so on. Because of the absence of rules and underwriting, a genuine Hard Money Loan is commonly topped at 65% LTV or less. One of the main reasons why Hard Money Loans are for investment in properties only because of its high- cost regulations and predatory lending –you can’t impose such high-interest rates and cost on a property occupied by the owner. However, you need to pay extra attention while borrowing hard money loans as the process doesn’t have to follow the traditional rules to verify that you can repay a hard money loan. This type of funding is excellent when you need immediate finding and running out of credit. Whether you are looking to borrow hard money or Fix and Flip San Jose, our team of financers and investors will guide you from assisting to disbursal of loans. In case you need more information about the process or our services, then please reach us at +1 (310) 666-8884 or mailto:carlo@hardmoneyloans.com.