When considering all the loan options available to you in Fresno CA, you may rightly wonder which one is best. Many people understand secure and unsecure options but have trouble when they see hard money loans because they don’t know what they are. This is an asset-based loan where you get funds that are secured by real property and are usually issued by private companies or investors. This loan option is not meant to help you buy a house, but rather, is there to get you funds based on the property’s value.
How They Work
Typically, these loan options don’t rely as heavily on your creditworthiness as with others. Instead, they will evaluate your property’s value, such as a home or business. The equity in your home will be the depending factor as to how much you can receive through the loan and whether you are a good candidate. You typically get a loan-to-value rate of about 50 to 70 percent.
When To Use
When considering to use this loan option or some other form, you may want to use it as a last resort only. It is usually best to try and get a conventional or traditional loan from a broker or bank. However, if that fails, you always have this option available. This is primarily because you will have a higher interest rate and can risk losing your house or business.
Who Can Benefit
Almost anyone who owns a house can benefit from this loan option, which is considered a short-term option. Many times, people buy a house but cannot sell their old house yet and will request a loan on the new house to help make ends meet and pay the bills for both houses. Others will have a lot of equity in their home but have a poor credit score, so they aren’t qualified for traditional loan options.
How To Find/What To Consider
If you decide to consider hard money loans in Fresno CA, you’ll want to ensure they are legitimate by having an attorney read through the legal documents before signing the contract. No matter what your situation, it is always best to consider another loan option first, but you may choose to go this route if all else fails.
Hard money loans in Fresno CA can be used by individuals and companies to get the cash needed, but they may be better as a last resort. Contact Biz4Loans today at (888) 943-1497 to find out more helpful information and start the loan application process.
