Kentucky hard money lenders offer funding to those who are unable to obtain financial support through conventional sources such as banks and lending institutions. Kentucky hard money is private money that can be borrowed from an individual and/or extremely small lending company. [ad#ad-top]Normally, hard money lenders are expensive, charging interest rates that are two to three times higher than normal lending rates. The terms of lending are very short, from a few months to a few years. Moreover, hard money lenders in Kentucky (and all the other lenders in the country) lend at very low loan-to-value ratios (LTVs), which means that they only lend a small fraction of a property.
If you are one of those who want to invest a property in Kentucky but cannot find enough funds or cannot get approved due to bad credit, applying for a Kentucky hard money loan might be a good idea. Hard money lenders in Kentucky can assist you in your desire to purchase the house that you want. On the other hand, if you are not interested in investing real estate but need assistance in your financial problems, applying for hard money loan can help you pay off your debts or prevent a possible foreclosure.
Since hard money loans can be expensive for homeowners, people who often use the services of hard money lenders include real estate investors. They can decide if it is worth the expense to quickly buy a house using hard money. Hard money loans are also applicable to renovation and construction loans.
Despite the higher interest rates of hard money loans, there are several advantages of hard money loans, offsetting all the disadvantages. First, if you apply for a loan, hard money lenders will usually immediately act on your application so that they are able to close the loan in less than a week. This is considered very fast in the lending world, making them a good choice for scenarios that require immediate funding. Moreover, because a loan for hard money is collateral-based, the focus is on the equity position of the lien. Borrowers with bad credit are often approved because their credit history is not important in the payment of the loan. Even income is not significant if you are planning to loan hard money. Hard money lenders in Kentucky can be a useful resource of funding. Contact a hard money mortgage broker for information.