What is a Hard Money Loan?
A hard money loan is typically a short-term, non-conforming loan that does not come from traditional lenders, but rather individuals or private lending companies that accept an asset or property as collateral. Borrowers frequently turn to hard money loans after a mortgage application or loan is denied, or to simply avoid the lengthy process of getting approved for a conventional mortgage.
Counter to traditional mortgages or other types of secured financing, hard money loans come with a fast and often less stringent approval process. This makes hard money loans ideal if you need to make a purchase or refinance happen very quickly. With a conventional mortgage, it frequently takes a few months, from application to closing. With a hard money loan, it’s possible to close in a few days!
Hard Money Lenders: What to Know About Working with Block Private Funding
Small hard money lenders are typically private investors or companies that exclusively deal in this type of lending. You will not find a hard money loan options at your local bank. Hard money lending isn’t subject to the same regulations that conforming, traditional lenders are. This means our investors are free to make their own rules about what debt to income or credit scores they expect their borrowers to have. It’s certainly possible to find a hard money lender that will give you a loan even if you’ve been denied by most conventional lenders. For most hard money lenders, the crucial factor isn’t a borrower’s creditworthiness, but rather the value of the collateral being purchased or refinanced.
Unlike most institutional lenders and underwriting, Block Private Lending’s decisions are based on the merits of each transaction as well as the benefit to your borrower.
With Block Private Funding, you can expect:
- Fast-tracked review of your loan scenario
- Quick loan applications, document requests, and underwriting process
- Fundings take place in as little as 7 days
- You get another grateful customer!
