Hard Money Purchase Loans

North Coast Financial is an experienced San Diego, California based hard money lender offering fast approvals and funding, low rates and excellent customer service for various types of hard money loans including purchase loans.

There are many reasons a borrower may decide to utilize a hard money purchase loan (also known as private money purchase loan) instead of conventional financing to buy a property. Both residential loans and commercial loans can be funded using hard money.

A subject property for sale may be receiving multiple offers. Hard money loans can be approved and funded within a matter of days as opposed to traditional financing from a bank which will take weeks or even months. A potential buyer who is able to offer a much earlier closing date than other bank financed offers will stand out and have a better chance of securing the sale. The borrower can refinance and obtain traditional financing once the property is acquired.

Unfortunate circumstances such as foreclosures, short sales, low credit scores or bankruptcies may prevent a borrower from being able to obtain financing from a bank. Hard money lenders are less concerned with these types of issues on a borrower’s record as long as the loan to value ratio is an acceptable percentage. The borrower may be able to use a hard money purchase loan to initially acquire the property and refinance with a conventional loan in the future once time has passed or these issues have been cleared from the borrower’s record.

Banks will not typically give traditional financing to a trust, LLC, corporation or non-profit organization. In these cases, a hard money purchase loan is the entity’s best option for obtaining financing.

Traditional lenders will often not lend to borrowers who already own many investment properties. The bank views this scenario as too risky. The investor will be able turn to a hard money lender to secure a hard money purchase loan and acquire the property. The property can be refinanced in the future with traditional financing once other investment properties are sold.

North Coast Financial also offers many other types of hard money loans including bridge loans, fix and flip loans, investment property loans, probate loans and refinance loans. Contact North Coast Financial now for more information.