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Patrick Hook, Broker-Associate

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If you have bad credit or are looking for a non-traditional way of securing real estate, hard money loans can be quite beneficial. These loans are granted by a private hard money lender and are often seen as a mortgage alternative. Hard money is a great route to take in today's rough economic situation, but it is incredibly important to understand the process before you sign on the dotted line. Here are some important facts you must know about hard money lenders and loans.

They Are Quick

Generally speaking, hard money deals are after chosen because of their quick turnaround, as they typically take between seven and 14 days to process. Complex bank applications are not included in the process, meaning your entire application can be completed within 24 hours. This streamlined process makes it a fantastic option for those who need the capital right away, and since you will be paying the hard money lender directly, there will only be a few people involved.

They're Based on Collateral instead of Credit

Your hard money loan rates will be determined based on the collateral value of your home, not your personal credit score. Basically, this means that your loan amount will be determined off of the value of the property and what the lender can gain if you default on payments.

They're Not as Expensive as You Think

While yes, the interest rates can be upwards of 18%, it is possible to get hard money loan rates at a reasonable cost. Remember, you work with a private lender and can debate over the best rate that works for you. Also, you do not have to sign anything you are uncomfortable with!

They're Flexible

Your lender can structure the loan in whatever way works best for both of you. If you have a large deposit to put down, or would like bi-weekly payments instead of monthly, simply ask. No two hard money loans are the same.

Above anything else, it is important to realize that hard money loans are very different from the traditional loan from a credit union or bank. These temporary solutions are fantastic for multiple different borrowers, so consider these facts next time you are in need of a loan.

Contact Us

12526 High Bluff Drive, Suite #300
San Diego, CA 92130

Main Office:
832 Camino Del Mar, Suite #1
Del Mar, CA 92014

California Department of Real Estate
Real Estate Broker,
Broker License #01883341,
NMLS #308757

NMLS Consumer Access

Maggio Capital, Inc., is based in San Diego, California. We originate, underwrite and facilitate non-traditional mortgages on residential and commercial properties throughout California.

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