Thursday, October 1, 2015

What You Should Know About Using Atlanta Hard Money Home Loans

By Tom G. Honeycutt

Many consumers are unable to get approved for conventional mortgage products. This is certainly the case for residential property investors. Mortgage companies currently have some of the strictest standards in the lending industry. The good news is that there is always the option to apply for Atlanta hard money home loans.

Products like these are especially popular among investors who aren't seeking primary residences. Many people are opting to invest in homes that are being offered at low prices in order to build their investment portfolios. They can then fix these properties up and sell them at profit. The entire process is very short and thus, borrowers won't need to maintain their loans for any extended amount of time.

Balloon payments are something that you should anticipate when using these products. The repayment terms for these offers are short indeed. You might have as long a three decades to restore a mortgage loan. With a hard money loan you will have just two years or less in most instances.

There are times when your lender will require you to have collateral that is equal in value to the loan that you want. This can be your primary residence or any other real property that you can use as surety. It may even be possible to get more lenient terms when you have adequate collateral.

If you happen to default on your loan, your lender will use the collateral that you have supplied to offset the resulting losses. In many instances, however, it is possible to use your current purchase as collateral. This will instead be collected to your debt after too many payments have been missed.

When you work with these companies, you won't face any major risks and you do not have to have a massive portfolio in order to get an approval. There are lots of lending institutions to choose from within this niche. It is vital to note that not all of these products are created equally. Some will have far more flexible offers or lower rates than others.

The rates for these products are almost always higher than those supplied by traditional lenders. This makes it important to shop around. In addition to comparing interest rates, you also want to take a look at the way in which these entities have been reviewed by borrowers in the past and the amount of history that they have in this industry. This is something that you can do online.

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