The Advantages And Disadvantages Of Hard Money Loan In Philadelphia

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The Advantages And Disadvantages Of Hard Money
Loan InPennsylvania
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Hard Money Loan

• Like every other type of loan there are
  advantages and disadvantages of hard money loan,
  but if used wisely it can be a very effective
  tool to get out of bad credit situation.

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Hard Money Loan Advantages
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Doesnt Require Credit History
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Rapid Process

• Hard money lenders in Pennsylvania will be able
  to hand over the money in less than three working
  days.

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Minimum Paperwork

• In case of any type of conventional loan the bank
  or lending institution will subject you to a
  grueling paperwork for days, even weeks. You will
  need to fill in endless applications, sign
  several documents and so on.

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• Securing hard money loan involves very less
  paperwork, hence rapid processing.

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Hard Money Loan Disadvantages
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Higher Interest Rates

• Since there is greater risk involved, any lender
  will demand higher reward for investing his/ her
  money.

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• The state laws of Pennsylvania restrict lenders
  from charging excessive interest rates but make
  sure that you are securing loan from a reputed
  and licensed lender.

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Lower LTV (Loan to value)

• some lenders may offer loan to value as high as
  85 of the property value and as low as 20 of
  the property value.

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• LTV depends on the hard money loan lenders
  approach and the circumstances surrounding the
  property in question.

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Beware Of The Shady Lenders

• Make sure that you have secured hard money loan
  from a licensed and professional lender.

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Licensed Lender

• You should check whether the hard money loan
  lender you have in mind carries licensing from
  National Mortgage Licensing System (NMLS).

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Shepherd Alternative Funding

• Hope you enjoy this presentation.
• We Finance advisor in Philadelphia streamline the
  loan process for time sensitive transactions.
• Visit our site for more details.
• http//www.shepherdalternativefunding.com/