What is Hard Money Lending?
Hard money lending comes in all forms, but is basically a type of debt that involves short-term loans made through a private lender. Because these loans carry higher risk and because they involve private lenders, hard money lending usually carries much higher interest rates and larger down payments than traditional loans. Plus, some equity is usually required in order to get this type of bad credit loan. One very popular form of hard money lending is the bad credit payday loan.
Bad credit payday loans are advertised in California and all across the country. In recent months, payday loans have received quite a lot of media attention as well. This has led to some understandable confusion about what payday loans are and what bad credit payday loans can do for customers. This type of hard money lending is often a type of bad credit loan that serves as emergency financing. Customers come in with proof of their employment and income, and the bad credit loan company offers them a cash advance against their next pay check. In some cases, to up to 75% pay check can be advanced. Once the customer receives their pay check from their employer, the payday loan company cashes it in order to pay for the advance as well as the high interest and administrative fees associated with this type of hard money lending.
Hard money lending that does not involve payday loans is often used by investors for buying and repairing abandoned properties. It is also used by some people to get out of foreclosure. Some people use these types of loans in order to improve credit so that they can qualify for other types of loans. Some borrowers use hard money lending in order to fund limited-time-only business opportunities.
If you think you might need hard money lending or a bad credit loan, call the experts at Lowest Mortgage Rates. Lowest Mortgage Rates can match you up with a bad credit mortgage lender or other private lender who can help you come up with the bad credit loan or traditional loan you need. Plus, since Lowest Mortgage Rates has several companies compete for your business, you end up with the best possible rate for you. Call today or fill out an online application to find out more.
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