Hard money, also known as private money, is a type of loan for people who dont qualify for conventional loans. There is a variety of uses for hard money.

Hard money loans will typically have lower LTV'S and higher interest rates then standard mortgage programs. If you have a large downpayment or lots of equity in your home then this may be your only option if you have very poor credit.

Hard money loans should be very carefully considered before entering into one. These are usually very high risk loans and can have severe consequences if you are late on your monthly mortgage payment. Weigh all options before entering into a contract for a hard money loan and make sure you are completely aware of all guidelines and terms of the loan before signing the closing paperwork.

One slight down side to having a private or hard money loan on your property is this. Since private individuals or entities normally make these loans, they do not report to the major credit bureaus. This means that even though you are making your mortgage payments on time, it does nothing to improve your credit score. Additionally, when you go to refinance out of the private money loan it becomes difficult to establish your mortgage payment history. The new lender will require that the history be documented.

Hard Money

Private Money used for loans that do not qualify for traditional loan programs.

If you are facing foreclosure a private money loan can help you get a fresh start. Pay your private mortgage on time for one year and you will be able to refinance into a much lower rate loan. During this time, it is important to clean up your credit and remove negative items from your report.

A hard money loan is a loan collatoralized on real estate based on the quick-sale value of the property which the loan was drawn on.

Many Hard Money Loans require a BPO in addition to an appraisal.
A BPO is a Broker Price Opinion from a real estate broker to find out what the house can be sold for if in must be sold quickly.
The Hard Money Lender usually has a list of BPO vendors that they will accept.
Contact Robin Paul at 888-713-0202 or info@lowcreditscorelender.com for more information about Hard Money Loans.

Due to the lack of liquidity now in the sub-prime market, many borrowers are turning to hard money loans as a source of financing.

Be very careful when going with a hard money loan because the consequences are can be very rough. An example, such as paying it late once, can possibly forfeit your ownership of that property.