Hard money comes in many different forms; one of the most common is a mortgage offered by almost all Louisiana hard money lenders. Using the owner’s real estate property as the equity, hard money lenders normally lend 65% - 70% of the property’s value. Generally, Louisiana hard money mortgages are used for commercial purposes. However, they can also be used for residential properties, called a non-conforming mortgage.
Hard money lenders in Louisiana loan hard money based on the value of the property, whether this real estate is owned or just about to be bought by the borrower. If a property is being bought by the borrower, the property’s value is based on its actual purchase price. If the hard money will be used for refinancing, the property value is determined on the property’s appraised value.
If you are applying for hard money loan to refinance an existing loan, Louisiana hard money lenders should know the date when you bought the said property and what did you use to pay for it. Most likely, properties that are bought just a month ago will be declined especially if you are lending more than the purchased price. Properties owned for more than a year are most likely to be refinanced using hard money, especially if you have invested money and hard work into the property. The property will be subject to appraisal and then you get your loan depending on the appraisal report. If you want to refinance a loan for your property using hard money, be sure that your property has obtained a significantly higher value than what you originally paid for it.
Louisiana hard money lenders will require you to fill out a credit application and will ask you to submit your tax returns, bank statements, and most recent pay stubs. This is in connection with hard money being owned by private individuals. The individuals who decided to invest their money in hard money lenders only want to protect their assets and make sure that they are lending money to qualified borrowers.
If you are unfamiliar where can you find Louisiana hard money lenders, the best way to find them is to talk to a mortgage company for referrals. A title company or a real estate agency can be good sources of information since they always deal with buyers and sellers of houses. You can also search online. Some of the lenders that you will find lend nationwide, although these hard money lenders normally want a credit check. Shop around until you find the hard money commercial lenders that will fit your needs.