Insula Capital Group

stacks of dollar bills

Why Should You Choose Hard Money Loans Over Conventional Loans?

Real estate investments require quick hands-on capital, which is why most investors opt for loans to finance their investments. Usually, the first choice for investors is conventional loans. However, that has changed mainly due to how complicated and particular these loans are. The majority of investors are opting for hard money loans rather than conventional loans for their real estate projects.

If you’re wondering why, let’s find out!

Hard Money Loans Don’t Have Stringent Requirements

Not all investors have a good credit score. However, this can become an issue while applying for conventional loans. Traditional lenders such as banks refuse to finance borrowers with poor credit scores since it can be risky for them. As a result, many individuals may not be able to secure these loans.

On the other hand, hard money loans don’t require any specific qualifications. These loans are available for all interested individuals. Plus, they’re offered to individuals with poor credit scores and history. This is because hard money loans are focused on the real estate venture’s potential rather than the borrower’s qualifications.

Hard Money Loans Don’t Penalize Pre-Payments

If your project is completed before its schedule, you’re always free to repay the loan before the loan term ends. Hard money loans don’t force any prepayment penalties on borrowers. On the other hand, traditional loanshave lesser monthly interest rates but come with a significant pre-payment penalty. Completing a project earlier than expected will allow you to save money, enabling you to start working on your next project.

Hard money loans also provide advantages, such as greater accessibility, more flexible terms, and faster approval time. These advantages offset the slight savings provided by traditional loans.

Hard Money Loans Are Quick and Fast

If you need immediate financing, conventional loans aren’t the right option for you. Conventional loans can take too much time to process and approve only to have your application rejected due to some minor inconvenience. However, hard money loans are perfect for immediate financing since they allow investors to make quick real estate transactions due to their quick approvals.

Generally, investors need to go through extreme ends to secure conventional loans from banks due to the standards and restrictions. On the other hand, hard money loans can be secured within 1 to 2 days with numerous benefits that conventional loans don’t offer. Therefore, if you want quick approvals and closing, opt for hard money loans.

Get Your Hard Money Loans Approved Today With Insula Capital Group

A man securing a loan with a leading private lender, Insula Capital Group

Are you looking for hard money lenders to secure a hard money loan? Look no further than Insula Capital Group!

Insula Capital Group is a leading private lending company offering various hard money loans. Our hard money loans are applicable for all real estate projects, such as fix and flip projects, land development, buy and hold, new construction, etc.

Get in touch with us to request a quote today!