Real estate investors can obtain hard money loans, which are short-term loans. Numerous benefits of a hard money loan include quick funding and an easy application process. You might be wondering if you can get a hard money loan if you’re an investor with bad credit.
Florida commercial real estate lenders are more accommodating than traditional financial institutions. The fact that 68 million Americans have bad credit is good news for those looking to obtain a hard money loan. A hard money loan is a secured loan, which means that if the borrower fails to repay the loan, the lender has the right to sell the property to recoup their losses. Lenders are more willing to approve credit as a result of the lower risk. In other words, even if your credit is bad, you might be able to get a hard money loan.
A hard money lender wouldn’t completely disregard the borrower’s credit, but because they place more emphasis on other factors, their underwriting process is frequently less stringent. The hard money lender will initially look for real estate or other types of property as security or collateral.
The hard money lender also takes into account the investor’s prior experience. You are less risky and therefore more likely to be accepted if you have a strong track record and extensive investing knowledge. The amount of money you have set aside for a down payment is another thing to take into account. You are a lower risk to the lender if you have more money to put into the property.
The bottom line is that people with poor credit can still get a hard money loan. Always read the lender’s terms to make sure you qualify for a good deal.
Monroe Funding Corp has a wealth of experience and knowledge to help you reach your investing goals. To learn more about Florida Commercial Real Estate Loans, contact us online or by phone at +1 (954) 419-3539.