Differences Between Hard Money and Traditional Mortgage Lenders.

We’ve discussed the differences between hard money lenders and traditional mortgage lenders and why one may prefer one over the other. Let’s explore these differences in more detail.

Source of funds: A standard mortgage is funded by a lender who sells the loans to an investor or a bank.. In contrast, private lenders largely fund hard money loans. The funds may come from investors, investment funds, or lines of credit. In most cases, hard money loans remain with the original lender until paid off.

Closing time: A significant difference between a mortgage and a hard money lender is the time it takes to close. Mortgages can take several weeks to close, whereas hard money loans can often close within a week, sometimes even less. This can be a significant factor when dealing with a seller who wants to close quickly.

Types of properties: Conventional mortgage lenders typically lend only on residential or rental properties meant for personal use, emphasizing borrower creditworthiness and asset condition. In contrast, hard money lenders will lend on both residential and commercial properties, and some do not even consider creditworthiness.

Call 305-363-7169 or 954-445-4434 to speak with a lending representative about our Florida private loans or visit our website at https://mmprivatelending.com to fill out an application form.