Hard Money Loan in Houston Restrictions

Hard Money Loan in Houston – Texas Funding

While it’s true that a poor credit score won’t necessarily stop you from getting a hard money loan in Houston, there are other restrictions. Many people believe that because your credit doesn’t prevent you from getting a hard money loan in Houston, that almost anyone can get approved. However, any reputable hard money lender will have their own rules for approving loans. Learn more about restrictions that may apply when you apply for a hard money loan in Houston.

You Can’t Use Soft Assets as Collateral for a Hard Money Loan in Houston

Hard Money Loan in Houston – Texas Funding
Your lender considers many factors before approving your hard money loan in Houston.

Have you ever wondered where hard money loans get their name? Hard money loans in Houston use hard assets as collateral. Therefore, you will need some hard assets to back your loan. Typically, this is the property that you use your loan to purchase. This is because it is tangible, physical property. Soft assets, like stocks and patents, generally aren’t acceptable forms of collateral. Therefore, be sure you have hard assets that you can use to back your loan.

You Need an Exit Strategy

Additionally, you will need to have an exit strategy when you seek hard money lending in Houston. Having an exit strategy in place shows your lender that you’ve thought through how you will pay back the loan. It also helps show that you’ve carefully considered your investment. Some examples of an exit strategy include purchasing property and reselling it or developing the property and using the funds from resale or rental to pay back your hard money loan in Houston.

You Can’t Use Hard Money for Consumer Purposes

What if you find the perfect lot to build your dream home on? Hard money lending in Houston is for commercial purposes, not residential projects. Therefore, if you have some improvements you want to make on the home you live in, a hard money loan in Houston isn’t the right option for you. However, if you develop the land and rent out to other people to live in, hard money financing may help you complete your project.

At Texas Funding, we specialize in providing hard money financing options for all types of real estate investments. For over 38 years, we have been filling the gap with our private funding options. We offer financing to individuals, institutions, and companies of all types and sizes. Our team can help you find the funding options that work best for you to help you take advantages of investment opportunities quickly. Call us today at 1-800-833-0138 to learn more and discuss your financing needs with our experts. We are here to serve you!