Unlike the traditional mortgage system, the infrastructure of a hard money loan is somewhat different. For example, in this case, you will get the money from an organization or people who’ll take your house as collateral. Besides, you don’t have to provide your credit card report while applying for a hard money loan.
However, the rules of the same generally will be subject to the lender you’ve chosen for your purpose. For example, depending on the selected organization, your overall interest rate, origination fee, and closing cost will differ.
Besides, the qualifications for the mortgage might be a little distinctive in some cases as well.
What Are Hard Money Loans?
A hard money loan is a particular type of loan taken from private or non-traditional lenders. Here, the asset that is being purchased is actually used as form collateral for the loan. It reduces the risk for both the lender and the borrower.
This specific type of loan is also known as a short-term bridge loan. The name is given because this type of loan bridges the gap between long-term financing and investment purchase.
Hard money loans are mostly used for quick turnarounds between the sale of a property and purchase. Hard money loans also can be used for quick home finances only till the time the buyer secures a usual traditional loan.
In the real estate industry, this particular loan is generally used. Some of the real estate investors purchase homes, which require repairs, and after fixing them up, they sell those homes for profit.
This specific thing is known as flipping and can be really hard to get financing for. Some other types of real estate investors might utilize the hard money loans for rental or commercial properties, only in case they are not able to find conventional finance.
How To Choose A Hard Money Lender?
In essence, there are thousands of hard money lenders operating in Texas right now. Therefore, if you want to choose the best one amongst them, you’ll have to consider a few aspects. Please keep reading to find out more about it.
- If you want more flexibility and less rigidity in the hard money loaning system, you’ll need to choose a local lender. Furthermore, prior to offering the loan, most lenders will want to inspect your property close. Hence, selecting a local alternative can make the whole procedure much more easygoing.
- The default rate of hard money loans generally varies from one lender to another. Therefore, if you want to pay as little as possible, you must choose someone who lends money at a lower percentage. Also, consider evaluating the underwriting principles of the organization before selecting them.
- No matter who you choose, ensure that they have an official lending license. Besides, you should also check if they’re registered with the Department of Real Estate and Nationwide Mortgage Licensing System and Registry or not.
How To Get A Hard Money Loan?
In order to find these types of loans, you are required to contact all those organizations that provide these types of loans. Here the role of hard money lenders comes into action. When you have a proper internet connection, you do not need to worry about fencing an organization that specializes in offering hard money loans.
You also can contact the local real estate investors or real estate agents for some trustworthy names. Reach out to a number of lenders, have a discussion regarding your requirements, and develop a healthy relationship.
In order to make your task much easier, here we are offering some suggestions in your region.
Top 5 Money Lenders In Texas
In this section, we will list down some of the best hard money lenders in Texas. There’ll be a separate “pros” section available for each of them. So, make sure to read till the end!
Noble Mortgage & Investments is, in essence, a direct real estate lender that offers hard money mortgages for both commercial and residential purposes. The organization is known for its excellent turnaround time and unavailability of junk fees.
- The asking interest rate is pretty low.
- Faster and streamlined loaning procedure.
Whether it’s about experience or expertise, HouseMax Funding can be your ideal option from almost every aspect. The overall lending procedure of the organization is pretty simple. You can also get it done online without having to move an inch from your bed.
- Funds your loan within ten days or less than that.
- Offers both fx & flip and rental loans to everyone.
Vision Lending is all about offering lending flexibility to its consumers. The corporation provides a wide array of loans and rentals, such as vacation, permanent, and transitional rentals. You don’t have to provide tax returns or income verification with them as well.
- Offers a long loaning term, depending on your credit score.
- The origination fee and the closing cost are much lower than the other alternatives.
The loan products of Jet Lending are pretty extensive, in our opinion. Additionally, the organization can also help you with purchasing, renovating, and reselling a property. Jet Lending also does not charge any pre-payment penalties from its consumers.
- The application procedure is much easier.
- The deals usually get closed off within seven-ten days.
Unlike most other lending organizations available out there, Catalyst Funding uses an integrated lending process to save both your time and money. Besides, it offers a one-on-one consultation system to create a lending ecosystem in accordance with the customer.
- The lending procedure can be completed online.
- Closings are pretty quick (completes within seven days or less)
There you go – these are some of the money lenders in Texas that you can choose for your purpose. However, before you opt for any of them, we’d ask you to take a closer look at their features and offerings first.
In addition, we’ll also ask you to evaluate their rates and compare the same thoroughly. This way, it’ll be easier for you to select the most suitable option available out there!