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   HARD MONEY LENDING

Assessing the Risk of Hard Money Mortgage Lenders


paperfree Aditi Bansal 29:14
Published on Monday, June 05, 2017

When considering a hard money mortgage, make sure you assess all the risks and opportunities available, while being honest about your financial capacity and your ability to repay the loan.

tags  #Hard Money Mortgage  #Sub Prime Mortgage #Hard Money Lenders

 

Hard money mortgage lenders work with high-risk clients, who may already have bad credit. Often, this is usually the last alternative for the borrowers with bad credit. Such loans are also referred to as ‘subprime mortgages’.

Advantages

If you a borrower considering a hard money mortgage, you need to consider the disadvantages that come with the service:

  • Repayment ability – If you are using hard money lenders as your only option, you probably have a bad credit history, which means that you have previously struggled with repaying your loan, and you may have a hard time keeping up with monthly payments. Entering into such an agreement can easily result in your property being foreclosed
  • Interest rates – Relying on a hard money mortgage means that you will have to pay more than you would with a traditional lender to cover the high interest rates.

Borrowing from Hard Money Lenders

If you plan accordingly and get your finances right, a hard money mortgage can have its advantages in some cases:

  • You are aware of the risks – A hard money mortgage is a high risk alternative that can easily lead to you losing your home. You should only apply for the loan if you have the means to make all the payments as per your agreement with the lender
  • Consider the unexpected – Only take a hard money mortgage when you have multiple sources of income and you can keep up with the payments even if you lose your job or you have a hard time keeping up with your primary income earning activity. 


This page with a focus on Hard Money Mortgage, Sub Prime Mortgage was shared by Aditi Bansal.

 
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