The term “hard money loan” is an oxymoron because they are not hard.
The term hard money is more in reference to “hard money (cash) on the barrelhead” so to speak. Quick and easy. With limited documentation, easy qualifying, and primarily using a good equity position in the real estate collateral to ensure the loan funds are safe.
Would you like to learn about Hard Money Loans?
Is Hard Money the right loan for you?
Valor Lending Group is ready to hit your next hard money loan out of the park!
We have helped hundreds of borrowers with Hard Money Loans. We have funded over a Half Billion dollars in loans.
We are here to help you decide if hard money is the right loan for your scenario.
Below are some reasons why you may want to use hard money. We are standing by to answer any questions or concerns you may have. We look forward to making you dreams come true!
Why Use Hard Money?
Here are just a few reasons to use hard money if you are looking to build up your real estate portfolio this year. There are many reasons to use hard money for your investment property needs whether you are looking for fast turn times, present a stronger position with your offer or have credit history issues, hard money lending may be a great choice for you or your team. Sometimes you need to compete against cash buyers and hard money does just that.
Typically, conventional mortgage lenders look at the borrower’s creditworthiness, assets, debt to income ratio, and many other variables when underwriting the loan. This can take too long and leave you without financing if you do not fit within the many underwriting requirements.
That is where hard money comes in. Hard money lenders look very closely at the property location, type, value, and potential cash flow (market rents etc.) so that in the event of default, they can foreclose and still recover their funds. Therefore, the borrower’s income and credit are not a big deal providing that the property is desirable.
Three Reasons to Use Hard Money
1. FAST TURNAROUND TIME
The application and approval process for a conventional loan can be time extremely grueling and difficult.
These conventional mortgage loans involve completing many forms and submitting hundreds of pages of supporting documents that are scrutinized with a fine-tooth comb. Also, with the number of loan requests these lenders receive, it can take weeks for a lender to even respond and/or approve them. Meanwhile, the seller requires short, strict performance timelines.
On the other hand, applying for a hard money loan takes much less time and is much easier. Pre-approval can occur within minutes of speaking to the Loan Officer, and you can get funded within a fraction of the time it can take a bank. Valor Lending Group Funds Coastal California hard money loans up to $25M in as little as 3 days, often without an appraisal. We fund hard money loans nationally, but outside of California they typically take 10-14 days and do require an appraisal or BPO.
2. STRONGER POSITION WITH YOUR OFFER
If a property is in high demand, the buyer that has a hard money loan ready is often viewed as cash, which means you can now compete with cash offers. Since hard money loans have a faster processing time and less red tape, there are fewer opportunities to fail.
Also, if a conventional lender turns the buyer down for a loan for any reason, it will ultimately kill the deal. Hard money lenders, however, can provide quick financing when a bank pulls out of a deal so that you can save the deal and buy the property. Valor Lending Group saves deals. We have relationships with hundreds of Realtors that call on us to save their transaction.
3. CREDIT HISTORY VS. PROPERTY VALUE
When you seek a conventional loan from a bank or mortgage lender, they look at your credit scores and income history, as just a few of the many variables to decide if they will approve your request.
With a hard money loan, lenders focus more on the value of the property, instead of looking at credit and income. The property becomes collateral for the loan, in case you default.
This allows you to get a loan even if you don’t have the strong credit and income that banks require.
Call or email us for immediate attention to your scenario!
Valor Lending Group can fund your fast-hard money loan up to $30M in as little as 7 days often without an appraisal.
Learn about our new hard money loans today.
Check out more information on our programs CLICK HERE and please do not hesitate to call on us for any scenarios.
We look forward to an opportunity to demonstrate our prompt and professional handling of your loan scenario.
Recap of our Loan Products:
- Stated Income Loans (No Tax Returns, no W-2s, No P&L) up to $5M
- Bank Statement Income Loans (Great Bank Statement Programs for business owners and self-employed)
- Hard Money Loans (As low as 20% down / minimal documentation) Fund in 7-10 days
- Flipper Loans (Flip a property with one of our many options) up to 90% leverage
- Commercial Line of Credit
- 100% Financing (cross collateralize- hard money)
- Foreign Nationals Loans (no social security or residency required)
- Raw Land & Lot Loans
- Ground up Construction Loans for spec homes, custom homes and commercial ground up to $500M
- 2nd Position Loans up to $5M
- DSCR Rental Property Loan – No tax returns or DTI calculation! Based on subject property cash flow
- Farms, Vineyards, Ranches and Agricultural Properties (20-30% down)
- Super Jumbo Loans up to $30M
- Manufactured Housing / Mobile Homes (20% down / 620+ credit score)
- Acreage Properties
- Commercial Loans up to $500M
VALOR LENDING GROUP OFFERS EVERY MORTGAGE LOAN IN THE BOOK
We look forward to the opportunity to serve you!
CONTACT US TODAY for immediate attention to your scenario!
**Rates and terms subject to change without notice**
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Valor Lending Group
CA DRE # 02026238 | NMLS #1600345 | AZ Branch # 1030263
Petco Park Diamond View Tower
350 10th Ave / 10th Floor
San Diego, CA 92101
Office: (619) 344-2640
Fax: (619) 872-2400