As a hard money lender, Bankers South offers the Transitional Lending Program for non-conventional, fixed or floating-rate bridge loans on the following asset classes:
- Agricultural Land and Timberland
- Residential Development Land
- Transitional Commercial Assets
- Student Housing
- Public Storage
- Medical Offices
- Existing performing and non-performing loans
It’s important to know that hard money loan lenders operate rather differently than traditional lenders. As private lenders, the terms and guidelines that hard money lenders follow are unique to that particular institution.
Here are some quick, simple facts all borrowers should know regarding hard money loans:
- What is a hard money loan? A hard money loan is a loan in which the investor receives financing based on the value of a property as opposed to the traditional lending conditions that banks typically assess such as credit scores, tax returns, and income statements.
- What are residential hard money loans? These are short-term bridge loans for investors who need to close swiftly. They are good for real estate acquisitions, refinancing, and foreclosures.
- What are the interest rates like as compared to traditional lending? Hard money loans usually carry higher interest rates because hard money lenders are not directly competing with traditional lending sources. However, these loans will usually keep borrowers from going into bankruptcy and foreclosure, thus saving their property.
- How secure is the investor? Bankers South hard money loans are secured by a property with 30% -50% equity, so the investor is well protected.
- Having difficulty finding traditional financing in time to save your investment property? A hard money loan may be your solution if your credit is less than perfect. Sure, the interest rates are higher, but you have the power to act fast and secure your investment property so you can flip and receive your profit.
Do you have more questions on hard money loans? Contact Bankers South Lending & Finance for additional information regarding our Transitional Lending Program.