Securing the right kind of loan for any situation can be difficult, and there are various issues that can make it harder to do so. There are a few ways to overcome these challenges, however, and one option that might be right for you is to use a Texas hard money lender who will offer you the loan that you need to move forwards with your purchase or your project.
What Is A Hard Money Loan?
A Texas hard money lender offers a hard money loan, which is a type of loan that differs from traditional ones in a key way – it’s backed by property instead of credit. In a traditional loan, you’ll be extended credit based largely upon your credit history, debt to income ratio, and other factors. In a hard money loan, the property in question is generally used to secure the loan. These loans aren’t backed by federal insurers in most cases, and as such they can have their own terms and conditions as needed.
Why Use A Texas Hard Money Loan?
There are some risks involved, obviously, including higher interest rates. But when you review the key reasons that using a Texas hard money lender makes sense you can see why many have utilized them in the past. Reasons to use these types of loans include:
- They can be obtained much faster, making them a solid choice when trying to secure a loan quickly in order to take advantage of a sudden deal or property opportunity.
- There are fewer restrictions in terms of credit scores and income ratios. This means that even those who are unable to qualify for a traditional loan can secure these types of loans.
- Often, these loans are used to secure a property quickly, and are then paid off when a traditional loan is taken out. They’re a kind of ‘bridge’ loan that helps make it possible to move forwards with projects and opportunities without struggling to get a loan quickly.
In short, there are numerous reasons and occasions when turning to a Texas hard money lender makes a lot of sense. Whether you’ve found a property that is priced to move and need to purchase it quickly or have to take out a loan to complete a project but have too much debt to income ratio, these loans offer a path to the money needed. They’re worth looking into and could help you in a big way. For more info call: 713-784-7676 or email: info@houstonmoneyman.com