Your current employment, income, credit, or asset situation are not vital to New Jersey hard money lenders. Unlike conventional loans, application for hard money loans is based on your assets.

Loans for hard money are considered private loans since they are placed in individuals and/or small-time lending companies that use their own money to finance or refinance loans pertaining to real estate. As with any other hard money loans in the country, these loans are based on the property value of the collateral. While traditional lending institutions have strict guidelines on underwriting for borrower credit, loan-to-value ratio, and real estate asset value, hard money lenders in New Jersey concentrate on the collateral of the loan. Since hard money lenders are always in the lookout for maximum return, they are willing to take more risk for this return by relaxing their lending standards.

One more reason why hard money lenders take the risk of lending to individuals with bad credit rating is that the moment borrowers default on the loan, the hard money lenders are the first creditors to be paid when the property is sold.

Everyday, hard money lenders witness all types of borrower situation where in traditional lenders do not accommodate the application of the borrower because of their credit issues, income or employment issues, and time frame issues. Conventional lenders normally allot 40-day processing period before a loan is approved due to credit investigation. If you are applying for hard money loan, in less than a week, you can get the funding that you need for your real estate investment.

Clearly, if you live in New Jersey with a poor credit rating, you could directly benefit from using hard money loans. People who have properties that do not fit the requirements of conventional soft money lenders may also benefit from New Jersey hard money. If you are facing foreclosure on your home, or you are an investor who is about to close a good deal but cannot wait for 40 days to meet the time requirements, you can apply for hard money loan. One reminder before applying for this type of loan: check with the conventional lending institutions first to make sure there is no other way to get yourself a soft money loan. If there is really no way that you can get your application approved, then clearly it is time to apply for private money loans.