Hard money loans are a specific type of asset-based loan that a borrower receives funds and is guaranteed for the value of a parcel of real estate. Hard money loans are usually issued by individuals / investors or companies. Interest rates are usually higher than conventional lenders. Most loans are typically used for projects that last from a few months to a few years. It is similar to a bridging loan, which has similar criteria for granting loans, as well as costs to borrowers. The main difference is that a bridge loan refers to a commercial property or one that may be in transition and does not yet qualify for traditional financing; On the other hand, hard money often refers to not just an asset-based loan, but possibly a distressed loan. financial situation, such as arrears on the existing mortgage, or where bankruptcy and foreclosure proceedings have occurred.

If you need a loan, there are several different types that you can consider. Here are some of the different types of lenders.

1. Commercial banks

One type of lender you might look for is commercial banks. These types of banks will offer different loan programs. If you are running a traditional business, you may be able to get a hard money loan from this type of establishment to expand your business.

2. Mortgage banks

If you need home loans, you may want to check with a mortgage bank. These hard money lenders can provide you with the money you need to buy a property. When you get a hard money mortgage from a mortgage bank, you are not going to use this as a long-term solution. Terms are usually very short and you will have to make a balloon payment at the end of the mortgage term.

3. Mortgage brokers

Another type that you may want to consider is a mortgage broker. They have a variety of different loan sources that they can use to get you the best deal possible. With that type of broker, you can secure the money you need to buy a property.

4. Finance companies

There are many different finance companies that also offer hard money loans. These finance companies can provide you with the money you need for almost any project.

5. Online loan companies

One of the best and easy options that you can consult is the online loan company. There are many different lenders doing business online. With the ability to work with lenders online, you will be able to conduct business from the comfort of your home. You will also be able to compare prices very easily and make sure you have the best deal. When looking online, be sure to find a lender that does business in your geographic area. Many lenders are licensed to do business only in certain states, and you don’t want to start the process if they can’t finish it.