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NEED A HARD MONEY LOAN?

QUICK CLOSINGS

Hard money lenders in Miami can close quickly (7 to 15 days) compared to traditional financing which can take up to several months.

FLEXIBLE LOAN TERMS

Hard money lenders in Miami can be very flexible in terms of loan structure. This means you may be able to negotiate for better rates, custom repayment schedules and other personalized options that work best for hard money loan needs.

LOWER CREDIT SCORES OK

Traditional lenders often have high credit score requirements that hard money loans don’t always require. Hard money lenders in Florida focus on the real estate since the hard money loan is secured by it. This means even if you have had bad credit in the past, hard money could still be an option for your real estate needs

LESS PAPERWORK NEEDED

Compared to traditional financing where lots of paperwork is needed, hard money only requires basic checks such as proof of income, proof of value of the real estate, and clear title. This makes it much easier on you, the borrower, with less hassle or delay times, to get approved and funded.

Common Customer Questions

What is a hard money loan?

A hard money loan is a short-term loan secured by real estate and provided by hard money lenders, also known as private investors. These loans are typically used to finance real estate transactions, renovations, or fix and flips. They have higher interest rates than traditional mortgages or home equity loans. Hard money lenders in Miami use their own criteria when approving hard money loans, such as the value of the property being purchased, renovated or fixed and flipped. This makes them ideal for borrowers who cannot qualify for traditional financing.

Do you make hard money loans on a principal residence I am purchasing?

A hard money loan cannot be given to a buyer for the buyer's principal residence unless done through a licensed mortgage originator which increases your costs, i.e. mortgage originator's fees and commissions, to close. So without a licensed mortgage originator, a hard money loan for a buyer's principal residence will not be made.

How do hard money loans differ from traditional loans?

Hard money loans differ from traditional mortgages in that they are asset-based, meaning that hard money lenders use the value of the collateral property, such as a home or real estate investment, to determine loan eligibility rather than relying on the borrower's credit score. Unlike with traditional banks and lenders, hard money lenders will take into account factors like current market conditions, potential appreciation value of the property and other unique circumstances when making an underwriting decision. Hard money loans can also offer faster funding times and more flexibility when it comes to repayment terms. These types of financing usually carry higher interest rates due to the higher risk taken on by hard money lenders.

Who can qualify for a hard money loans?

Hard money loans are generally available to anyone that meets the criteria set by hard money lenders. Usually, hard money lenders in Miami will require a borrower to have some income source and assets sufficient for the loan amount applied for. Critical to most hard money lenders in Miami is the value of the real estate that secures the hard money loan. Additionally, borrowers may also be required to put up other forms of security for hard money lenders to approve the loan request. Other factors such as location of property being purchased and length of time requested (the term of the loan) can also influence qualification requirements set by hard money lenders.

How long does it take to close a hard money loan?

It typically takes about 1-3 weeks for hard money lenders to close a hard money loan. The actual time frame depends on the lender's timeline, paperwork requirements, and any third-party evaluations. Meetings between the borrower and lender may also be necessary to assess risk factors before closing. It is important that borrowers are prepared to provide all necessary documents as soon as possible in order to expedite approval and closing of a hard money loan.

Is there collateral associated with hard money loans?

Yes, hard money loans typically require some form of collateral most commonly, real estate. Other assets can be used to secure the loan. The type and amount of collateral required by hard money lenders can vary depending on the lender and their terms. Generally, hard money loans are secured with a lien against the property being used as collateral. This is to ensure that if the borrower defaults on their loan repayments, they still have something they can give back in exchange for repayment of what was borrowed.

Are hard money loan interest rates higher than traditional lenders?

Yes, hard money interest rates are typically higher than traditional lenders. For example, hard money lenders in Miami may charge anywhere from 10-15% interest. Meanwhile, traditional lenders like banks will generally offer lower interest rates of around 4-7%. However, hard money loans often come with fewer restrictions and a quicker turnaround time than traditional loans - making them an attractive option for borrowers who don't want to wait for the slow process of bank funding.

What are the costs associated with a hard money loan?

The costs associated with hard money loans vary, depending on the hard money lender. Generally, hard money lenders charge points (a percentage of the loan amount) to be paid at closing. Additionally, hard money loans often have higher origination fees or prepayment penalties. As hard money lenders may also require a balloon payment or minimum loan term, it is important to understand any additional fees and requirements before signing a loan agreement. There will be closing costs, such as title insurance, attorney's fees, government taxes and fees, and commissions which you will need to consider in the math to close.

Can I use a hard money lender to refinance my mortgage or buy investments property?

Yes, hard money lenders can provide you with financing to refinance your mortgage or purchase an investment property. Hard money lenders in Miami also loan money for fix and flip investment properties. The hard money loan is secured by the real estate and hard money lenders offer competitive rates and flexible terms. You may be able to receive the funds for the loan within a few days if all of your documents are in order.

Do hard money lenders require credit checks and income verification documents?

Generally speaking, the short answer is no. However, some hard money lenders might require a credit checks and some evidence of an income source when evaluating hard money loan applications. Hard money lenders may also require additional information such as property appraisals to ensure that the loan is sufficiently collateralized. It's important for potential borrowers to understand what documentation hard money lenders in Miami need so they can prepare accordingly before submitting their application.

Where can I find trustworthy hard money lenders in Miami who have competitive rates and terms?

One of the best places to find trustworthy hard money lenders in Miami is right here at MiamiHardMoneyLending.com. We work with a variety of hard money lenders based in Miami and South Florida who offer competitive rates and terms for hard money loans. Additionally, they also have great resources to help educate borrowers on hard money loans and help them make informed decisions when choosing a lender.