Hard money loans are popular for borrowers looking to take their real estate investments to the next level. While some choose hard money loans to purchase the house of their dreams, others look to them as an investment of sorts for purchasing and flipping residential real estate. With simple borrowing options such as those from hard money lenders Miami, your real estate dreams are not too far off.
However, people often wonder how something like a hard money loan will impact them in the long run – specifically with their credit scores.
Most hard money loans will not show up on your credit report. However, there are some cases in which it could. If you have concerns if this applies to you, talk to your Broward County hard money lending team at Monroe Funding Corp.
First-time borrowers of hard money loans should know that the loan usually shows up on background checks and asset searches. A small percentage of loan deals show up on borrower’s credit reports but typically do not impact the overall credit score for the long run. However, it is important to keep in mind that some scenarios during the application process for the loan, taking on the loan, and the repayment of the loan may cause a credit score to fluctuate.
While unlikely, there is no one-size-fits-all approach to borrowing money because everyone has different credit histories and loan-size needs.
That being said, hard money loans can be a powerful tool in investment strategy. They are made to facilitate the acquisition of non-owner occupied real estate, and again, are popular choices for real estate investors. At Monroe Funding Corp, our process involves lending only based upon the value and condition of the property, unlike traditional lenders.
Know that credit score and loans are a unique and personal situation, so you should always consult your Orlando hard money lending team to find out how a hard money loan can affect your credit score.