Can I Get A Hard Money Loan with Bad Credit?

A hard money loan is an asset-based loan secured on the borrower's equity interest in a piece of real estate. Hard money loans are issued for a shorter term than a conventional loan and come with higher interest rates and fees than bank loans, despite the fact that intense competition has reduced the cost of a hard money loan to some extent.

Can I Get a Hard Money Loan With Bad Credit?

Hard money loans are historically known as loans of last resort, but in recent times they have become more widely used for a greater range of purposes. Hard money loans are issued by private investors who are not required to subject borrowers to any standard set of qualifying criteria. As a result, the borrower of a hard money loan is not required to have good credit. In fact, hard money loans came into existence to fill the financial services niche of providing loans to businesses and individuals who cannot qualify for a loan from traditional financial institutions.

Hard money loans are frequently issued to borrowers with bad credit. Unlike credit-based bank loans, the typical hard money borrower not only has bad credit, but is in actual financial distress, such as facing foreclosure proceedings or bankruptcy.