Interest issue You must be known that hard money is a collateral based loan. Anyone can obtain this loan if he has property which he can use as collateral. Many people have concern about hard money rates. It is very important to know about hard money interest to all. Hard money interest rates are changing depending on many factors. Interest rates are effects on property location, property condition, credit score and the timing of loan.
Property location Hard money loan is a property based loan. Property value is playing the main role to approving a hard money loan. It is also important to show that where your property is situated. Property location is playing a big role to increase or decrease your interest rate. If your property is in bad or remote areas then in this case you will need to pay extra 1% to 6% interest. Your interest rate’s range will be at 11% to 13% if your property location is in average location. Most of the borrowers have the property which is in average location. If your property location is in good location then your interest rate may decrease. You may need to pay up to 9% to 12%. It is happening for residential and commercial loan. But it is different for land loan. You will need to pay 11% to 13% if your property is in great location. And average location property borrowers 12% to 15% for land loan. And 13% to 16% interest need to pay for bad or remote location property borrowers. Everyone should know about the up and down of interest while it is case for property location. Thus you may get loan easier than others.
Property condition Property condition is also important for hard money loan. If your property is in good condition then you may get discount on your interest figure 0.5% to 1% for residential, commercial and land loan also. Average condition property borrowers can feel free to apply for any type of hard money loan because there is no affect for the loan which has average condition of property. If you are applying for land loan then you do not need to worry about the bad condition of your property because bad condition is not affecting on your interest rate if you want to take land loan. But you need to pay extra 1% to 3% extra interest if you want to get residential and commercial loan.
Credit score Although hard money loan is not depending on borrower’s credit score but hard money interest rate is depending on borrowers credit score. There are many people who have not sufficient credit score. Most of the people can not cross the 500 credit limit also. In this case, banks cannot provide you loan but hard money lender can lend you money with insufficient credit score. But you need to spend more extra interest rate to get loan from hard money lenders with insufficient credit score. You can get 0.5% to 1% discount on your interest figure for residential and commercial loan. Land loan’s borrowers can not get this benefit. On the other hand you need to pay extra 1% to 3% if you have bad or no credit score for residential, commercial and land loan. If you have not any credit score then you also can get loan but you have to pay extra interest rates.
If you want to know more and deeply about hard money loan then http://en.wikipedia.org/wiki/Hard_money_loan can help you mostly. If you know more about this then you can search about it through Google. There are many websites which are related with hard money loan and lender. You can find Lending Universe Inc. as a hard money loan related websites from where you can know more and deep information about hard money loan. From here, you also can apply for a hard money loan. Here is a short and simple loan application form which can be filling up within 2/3 minutes. Here are more than 10000 verified hard money lenders to lend you money within 7 business days also when banks need more than 1 month to approving any loan. Here are also many registered appraisers to evaluate your property accurately. Here you also can find out many registered loan brokers and real estate agents. Any body can apply for a loan from any where in the world and it does not matter where form he is.