Second mortgages are often used as a form of financial security or to finance other ventures, including businesses, real estate investments, and more. It’s typically used in tandem with your existing, original mortgage, which can make it trickier to secure and obtain. Not everyone qualifies, and lenders are often hesitant to give borrowers this offer, mainly because all proceeds from liquidation go toward the original mortgage if the borrower defaults.
Typically, borrowers get additional mortgages against the remaining home equity and can pursue other investments and projects with this money. However, banks and traditional lenders may be more hesitant to give you this added mortgage, which is why hard money loans are a great choice. Here’s why:
They’re faster than other loans
Other loans, especially home equity loans, are time-consuming, take forever to get approved, and have many other roadblocks that you need to overcome. Hard money loans tend to be faster and more efficient, which makes them ideal for urgent use. Whether you require a second loan as a way to bail out from your first mortgage, or you have an investment opportunity that is too good to miss out on, you know there’s always a quicker option.
You don’t need a solid line of credit
Most lenders don’t look at your credit score and history when it comes to hard money loans. That means even if you’re struggling right now, the focus will be on the prospective project and its value rather than your financial standing at present. It’s a great way to focus on potential rather than history and gives you the boost of confidence that you need in your investment.
Extensive documentation isn’t required
While you will need a list of documents and application forms to get your loan approved, it’s a lot less extensive than a traditional loan. Some forms, including credit authorization, personal financial statement, and real estate portfolio, may be required, but it’s generally a lot more flexible than other loans. You can discuss this in more detail with our agents or your broker.
Hard money loans are ideal for business
These loans are perfect for business use, so if you have a proposition that includes investing in CRE, launching a startup, or other types of commercial funding, hard money loans are the way to go. You can get a second mortgage to finance your business, which is often a common strategy.
Get in touch with us to know more about our hard money loans and private money lending services in New York. We offer second mortgages and hard money loans for rental properties and various projects that our clients wish to invest in. you can work out the details with our brokers upon scheduling a consultation. We’ll help you work through the process of applying for and acquiring a loan through us. Together we can make your dreams come true!