A Hard Money/Bridge Loan is an asset-based loan using commercial real estate as collateral. This would include office buildings, apartment buildings, strip malls, warehouses, just to name a few. The individual's income and credit score is not an issue for these loans, it's strictly based on the value of the real estate. Because of this, these loans are issued at higher interest rates than conventional commercial loans and are not issued by banks. Properties not qualifying for traditional financing or borrowers with credit problems, bankruptcies or foreclosures utilize these types of loans. All situations are considered. Terms are usually 12 to 36 months, with interest-only payments. Loan amounts are usually $1,00,000 to $50,000,000.
Key Aspects of a Hard Money Loan:
"My mortgage with a local bank was coming due and the bank wouldn't refinance it because my credit was not the greatest. Plus my business was slow and income was an issue. Doug at
D. Kayne
Pennsylvania
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