Understanding Hard Money Loans

Hard money loans are often described in complex real estate terminology which makes it difficult to understand. This is unfortunate, because the hard money loan is actually a very simple concept. In actuality, it’s the provision of an actual cash loan made to a borrower by a private lender. In a typical Kennedy Funding scenario, hard money loans are not subject to the stringent guidelines of a federal or conglomerate lending institution, and are therefore negotiable with Kennedy Funding directly, which offers avenues of negotiation not available elsewhere.

Who applies for hard money loans

The hard money loan, in theory, is a private loan that doesn’t require the same stringent guidelines as other loan types. Because of this simple reason, the hard money loan is frequently sought by people who:

* Have a history of bad credit
* Have no credit
* Have previously had a property foreclosure
* Have unverifiable income
* Must refinance immediately
* Need hard money quickly

The bottom line

Another way of thinking about the hard money loan is to view it as the pawn shop equivalent for real estate. There is no hiding the fact that the hard money loan is available with few questions asked and is paid in cash. In simple terms the cash can be used, as intended, for the financing of the project, or it can be used by the borrower in some other fashion. In any event, one can safely assume that the hard money loan will still need to be repaid and the property is still at stake.

Hard money has a definite place in today’s arena, however. Kennedy Funding, the leader in the direct private lending industry, fills a real need. Kennedy Funding does this by closing loans quicker than anyone else, and being more flexible than traditional lenders. Kennedy, in fact, has become known as a lender capable of funding those ‘impossible’ loans that no one else wants to touch.