We’ve mentioned a couple of reasons why people choose to go with hard money loans, including those with poor credit, a need to close as quickly as possible, or needs involving short term financing versus the typical bank financing which takes years. There are other reasons you may not be aware of, which we’ll look at a little closer in this blog.

You may have equity, but not the necessary flow of cash. A typical bank will examine the income produced by an investment as a factor in whether or not to provide financing. Hard money investors place greater importance on the underlying asset, which allows for greater flexibility in determining hard money financing.

The loan is too much. If a borrower requires more money that goes beyond the loan-to-value (LTV) ratio of a bank, there may be trouble. Hard money investors are better able to provide a higher loan amount. However, LTV is still an important factor when dealing with hard money, the difference being that these lenders are typically able to accept higher limits than a bank thanks in part to more flexible terms.

This update is by hard money lending Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money lenders FL or hard money lending Florida, please call 954-816-0388 or fill out our application.