If you’re in need of quick funding for a Florida real estate deal, you may be considering a hard money loan. But what if you have bad credit? Can you still get approved? In short, the answer is yes. However, there are some things you need to know before you apply.
Firstly, let’s define what a hard money loan is. A hard money loan – or private money loan – is a type of loan that is typically secured by the real estate itself and is funded by private investors or companies. Most private money lenders are looking at the real estate asset that will be used as collateral for the loan rather than looking at your credit score. This is why they are called hard money loans, because they are loans against “hard” assets like real estate.
These loans are typically short-term, have far fewer restrictions, and generally have higher interest rates. And they are often used by real estate investors who need funding quickly or may have bad credit.
When it comes to bad credit, most traditional lenders will deny your loan application, or the terms aren’t favorable. Hard money lenders however are often more concerned with the value of the collateral (the property you’re using to secure the loan) than your credit score. This means that even if you have bad credit, you should still be able to get approved for a hard money loan with an alternative lender like Community Capital.
That being said, private money lenders will need to understand the property details and will want to see that you have a solid plan for how you’ll repay the loan. So, while bad credit isn’t necessarily a dealbreaker, you’ll still need to prove that you’re a reliable borrower and that you have a plan in place for repayment of the hard money loan. You should also be prepared to provide detailed information about the property you’re using as collateral, as well as your financial situation.
If you’re considering a hard money loan in Florida, it’s important to do your research and find a reputable lender. Community Capital Holdings is South Florida’s premier hard money lender. It’s important your lender is licensed and experienced in your local area. Community Capital has a history of successful deals for our clients.
In conclusion, bad credit will not keep you from getting a hard money loan with Community Capital. Our alternative loan options are a great option for borrowers with bad credit, foreign investors, or real estate investors across Florida. Bad credit? You can still borrow from us. Contact the team at Community Capital Holdings to find the best loan fit for your needs.