Hard Money Lenders Can Help You When Traditional Lenders Will Not

Did you recently try to get a loan through a traditional provider like a bank or a mortgage company? If you were declined, it might be because of a low credit score or negative marks on your credit history. While you might be feeling down about this right now, you should know that it's not the end of the road. It still might be possible to get the money you need if you are willing to look outside of the traditional system.

One possibility you might want to look into would be hard money lenders. A hard money loan isn't based on your credit score, it's based on the collateral you offer up at the time of the loan. You'll still have to pay an interest rate as well, of course, but the hard money lender is not worried about you defaulting, because if you do, they will get to take whatever you offered as collateral. Here's why going this route for your next loan might be the right move for you at this time.

Hard Money Doesn't Take Forever to Get If Your Collateral is Available Immediately

The traditional loan approval process can take a while. The lender will want to pull one or more credit reports and then take the time to go over them in detail. Any negative marks will be scrutinized and may take additional time. If you do have negative marks on your report, you might not even end up getting approved anyway.

Because a hard money lender only cares about the collateral you are offering, you can secure the loan fairly quickly. If the collateral is available to be put up in support of the loan immediately, you can get your money almost right away.

Hard Money Lenders May Allow You to Set Up a Payment Plan on Your Terms

Hard money lenders will of course want you to stick to a payment plan if you are to hold onto your collateral. But they can also be more willing to let you set your own terms at the start. Maybe you want to pay a little less now and a little more in a few months time? That may be fine, as long as you don't try to change the payment plan again after it's settled.

Hard Money Lenders May Charge a Higher Interest Rate But It's Better Than No Loan at All

A hard money loan can be expensive, but it's better than the alternative. Yes, it's also a risk to put up collateral, but this is a loan that can allow you to get the funding you need right now, and that may be worth it to you, assuming you know you can pay it off on time.