Why Do Investors Use Hard Money Loans?
Hard Money Loans by their very nature are loans that are exclusively geared towards Real Estate Investors and Real Estate Investment Properties. They are underwritten very differently than a conventional/traditional mortgage and are based around either a properties future value in the case of a rehab or ground up construction loan or based on a properties ability to cover the mortgage payment. Unlike traditional mortgages, Hard Money Loans are not as focused on the borrower and do not care about job history or personal income.
We look to see that the investor has
- Enough liquidity to purchase the property and support it initially while getting it up and running.
- That the property will either immediately or at some point in the near future be able to cover the mortgage payments based off the rental income from the property.
- Credit History sufficient to show that a borrower will pay their debts on time every month. Low credit scores sometimes reflect over leverage of credit cards as opposed to bad payment history
These loans are considered business purpose loans and do not report on an individuals credit report like a conventional mortgage would and we have no limit as to the number of properties we will lend on.
If you would like to prequalify for a mortgage on an investment property, please call us locally at (843) 212-8548 or email andrew@optimuscapitalcorp.com.
