People wanting to buy a home may have financial problems or previous issues that will make conventional financing difficult. Other borrowers may have little-established credit for conventional financing, creating a barrier to obtaining a home they need to build a credit history. These are just some reasons why hard money financing could be a better option. There are pros and cons to using hard money for financing a home, so let’s review them:
The biggest advantage of hard money financing is that it opens up opportunities for homeownership for people with imperfect or inadequate credit. Those people may have attempted conventional financing without success. Hard money investors can help those with:
Another advantage of hard money financing is the ability to approve borrowers much more quickly than a conventional lender. There are far fewer documents needed to complete hard money financing. Closing can happen in days versus weeks for conventional loans. This can be an advantage during a competitive housing time so borrowers don’t lose an opportunity to get the home they want or need.
There are some potential disadvantages to financing using hard money. They include:
Regardless of your financial issues, contact AHL Hard Money Network if you are in need of hard money financing for your home or business. You can call or text us today at 813-668-9919.