what to expect from hard money lenders
hard money lenders do not operate the same as traditional money lenders there are a few important areas to be mindful of interest rates the interest rate that you ll receive from a hard money lender will generally be higher than a traditional lender this is so because the loan approval process does away with the traditional checks increasing the risk for the lender the higher the risk the higher the interest rate loan term hard money loans come with shorter terms the shorter term benefits both the hard money lender and the borrower the hard money lender has a shorter period they are lending money which reduces their risk period and borrowers don t have to pay a high interest rate for a long period of time approval metrics most traditional lenders approve a loan or the amount of a loan on standard industry metrics such as accepted debt to income ratios hard money lenders set their own standards on what is acceptable oversight and regulation hard money lenders are similar to payday lenders in that they don t have much oversight or regulation to abide by best hard money lenders