Frequently Asked Questions
Here you’ll find many of the questions we receive each day
Hard Money
What are hard money lenders?
To answer the question of what are hard money lenders, they are a distinct category of private or non-traditional lenders who provide short-term loans, typically secured by real estate assets. These loans, often referred to as "hard money loans" or "private money...
How much do hard money lenders charge?
Hard money lenders charge fees and interest rates that differ from traditional mortgage lenders due to the unique nature of hard money loans. The cost of borrowing from hard money lenders depends on several factors, and understanding these charges is crucial for...
Do hard money lenders have to be licensed?
The licensing requirements for hard money lenders vary depending on the jurisdiction and the type of loans they offer. While some states and regions have specific licensing requirements for lenders, especially those involved in consumer lending, hard money lenders...
Do hard money lenders report to credit bureaus?
Hard money lenders typically do not report borrower information to credit bureaus, and hard money loans may not have a direct impact on the borrower's credit score. Here's a detailed explanation of why hard money lenders often do not report to credit bureaus and how...
What is hard money?
Hard money refers to a unique form of private lending where individuals or private companies offer short-term, asset-based loans, often secured by real estate. These loans are distinct from traditional bank financing and are typically used in real estate investments...
Rental
Is it hard to get a loan for a rental property?
Investing in rental properties can be an excellent way to build wealth and generate passive income. However, one of the challenges that many investors face is obtaining financing to purchase rental properties. So, is it hard to get a loan for a rental property? The...
How to get a loan for a rental property?
Securing a loan for a rental property is a fundamental step in becoming a real estate investor. Here's a straightforward guide on how to obtain the necessary financing for your rental property: Check and Improve Your Credit Score: Your credit score is a key factor...
How to get a commercial loan for rental property?
Acquiring a commercial loan for a rental property, whether it's a multifamily apartment complex, a retail space, or an office building, requires a strategic approach. Here's a step-by-step guide to help you navigate the process effectively: Define Your Investment...
Can you use a VA loan for a rental property?
VA loans, backed by the U.S. Department of Veterans Affairs, offer eligible veterans, active-duty service members, and certain members of the National Guard and Reserves the opportunity to achieve their dream of homeownership with favorable terms. While VA loans are...
Can you get an FHA loan for a rental property?
FHA loans, backed by the Federal Housing Administration, are a popular mortgage option for homebuyers, especially first-time buyers, due to their low down payment requirements and more lenient credit criteria. However, they are designed for owner-occupied properties,...
Can you get a small business loan for rental property?
Leveraging a small business loan for rental property investment can be intricate, given that conventional small business loans are primarily directed at addressing business operational needs, expansion, equipment procurement, or working capital, rather than real...
Can you use SBA loans for real estate?
Yes, you can use an SBA (Small Business Administration) loan for real estate, but it's important to understand the specific circumstances in which SBA loans can be applied to real estate transactions. The SBA offers several loan programs, each with its own guidelines...
How to calculate rental income for a mortgage loan?
Calculating rental income for a mortgage loan is a crucial step in the loan approval process, especially if you plan to use the rental property to generate income that can help cover the mortgage payments. Lenders consider rental income to determine your ability to...
Bridge
What is a bridge loan in real estate?
A bridge loan, also known as a swing loan or interim financing, is a financial instrument commonly used in real estate to address a temporary gap in funding when buying, selling, or refinancing properties. These loans "bridge" the financial divide between the...
What is a bridge loan mortgage?
A bridge loan mortgage, often referred to simply as a bridge loan, is a temporary financing solution used in real estate transactions to bridge the gap between the purchase of a new property and the sale of an existing one. Bridge loans are a versatile financial tool...
How does a bridge loan work?
A bridge loan, a short-term financial solution, serves to bridge the gap between two major financial transactions, often used in real estate to facilitate the purchase of a new property before the sale of an existing one. Here's an overview of how bridge loans...
How long does it take to get a bridge loan?
The timeframe for obtaining a bridge loan can vary, depending on several factors. Bridge loans are designed to provide short-term financing to bridge the gap between two major financial transactions, typically in real estate. Here's an overview of the factors that...
How to get a commercial real estate loan?
Obtaining a commercial real estate loan involves several key steps and considerations, each of which contributes to a successful application and approval process. Here's a comprehensive guide on how to secure a commercial real estate loan: Define Your Financing Needs:...
How do commercial real estate loans work?
Commercial real estate loans are financial products designed to facilitate the purchase, refinancing, or development of commercial properties. These loans are integral to the world of commercial real estate and operate under certain principles and structures. Here's a...
How to qualify for commercial real estate loans?
Qualifying for commercial real estate loans is a multi-faceted process that involves demonstrating your financial capacity, the property's viability, and your ability to manage the investment effectively. Here's a detailed guide on how to qualify for commercial real...
