Private Money Lenders
A hard money commercial loan is frequently interchanged with "no-doc" or private loans. In this funding scenario, the underwriting decisions are based on the borrower's hard assets (real estate) instead of liquidity.
Hard money commercial loans typically close with little or no delay making for a great option when funding needs to be provided fast. Professional Capital Partners are a leader in hard money lending space.
Along with requiring substantially more documentation, conventional lenders have minimum credit scores (typically 700 FICO and above). As opposed to conventional financing, hard money commercial loans are underwritten on the collateral as opposed to the borrowers credit.
The interest rate is the final difference between conventional and hard money funding programs. Since there is inherently more risk involved in a true collateral based loan, the interest rates are higher than a conventional mortgage. We recommend our clients have 20%-30% LTC before pursuing this specific option.
Hard money commercial loans typically close with little or no delay making for a great option when funding needs to be provided fast. Professional Capital Partners are a leader in hard money lending space.
Along with requiring substantially more documentation, conventional lenders have minimum credit scores (typically 700 FICO and above). As opposed to conventional financing, hard money commercial loans are underwritten on the collateral as opposed to the borrowers credit.
The interest rate is the final difference between conventional and hard money funding programs. Since there is inherently more risk involved in a true collateral based loan, the interest rates are higher than a conventional mortgage. We recommend our clients have 20%-30% LTC before pursuing this specific option.
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