Hard Money Loans: Your COVID-19 Financing Solution

Have the impacts of COVID-19 altered your traditional income sources and credit score? Often, these need to be in good shape to get approval through a traditional underwriting process. Hard money loans may be a solution if traditional underwriting is not working for you. These loans can be used for residential or commercial financing. Hard money simply refers to using the value of the asset (property) to underwrite instead of your own finances. Hard money loans are available through Commercial Mortgage Depot (CMD) in New York, New Jersey, Connecticut, and Pennsylvania. Speak to our Clifton, NJ team about using a hard money loan to finance your property during COVID-19 in the area today!

Hard Money Loans as A Financing Solution

Recently, many have used hard money loans to finance residential or commercial buildings while we wait for the economy to recover. These are simple, usually short-term, loans that you can finance properties while you secure new tenants. If the borrower defaults on the loan, then the lender takes the property to settle the debt. These are typically used for non-owner occupied and can sometimes support vacant buildings.

Usually, only private lenders will provide hard money loans. This allows for more flexibility in underwriting. You may be able to negotiate more friendly terms or approval structures. During COVID-19, lenders are taking a higher risk if properties lose value, especially commercial properties. So, prepare to provide a lot of details during the approval process. Currently, rental properties may fare better unless you have a specific plan to fill commercial tenants fast.

The Terms of Harm Money Loans

Because of the risk to the lender, hard money loans will come with shorter terms and higher interest rates. Many banks would like to see these loans off their books in a faster period. Recently, we have seen terms of mere months to a few years. During the recent economic uncertainty, borrowers have needed to provide at least a 25% down payment or more. Many lenders will also make you undergo a thorough appraisal process.

Getting the Right Hard Money Loan Approved Today

You may have a perfect project suited to a hard money loan in mind, but, be sure that you do a lot of research before taking a hard money loan. Will you plan to occupy or flip the building be fool proof in this pandemic economy? You can feel free to reach out to our staff in Clifton, NJ for more ideas. We offer fast review and approval of loans and competitive pricing. Commercial Mortgage Depot (CMD) is here to help with hard money loans during COVID-19 in New York, New Jersey, Connecticut, and Pennsylvania.