A Brief History of Hard Money Loans

Hard Money Loans Houston – Texas Funding

If you’re considering hard money loans in Houston, you may be wondering just how long they’ve been around. Hard money loans actually have a rich history dating back to the 1950s. The term “hard money loan” is used exclusively in the U.S. and Canada. It refers to real estate financing secured by collateral. Hard money loans in Houston help people obtain financing for real estate in a different way from traditional financing options. Many people take out a hard money loan in Houston for fast real estate investment. Also, those who can’t receive a traditional loan due to their credit history often opt for hard money loans. Learn more about how hard money lending has helped people for decades.

The Beginnings of Hard Money Loans

Hard Money Loans Houston – Texas Funding
Hard money loans in Houston can fill in the gap for real estate investment.

In the 1950s after World War II, the United States experienced major changes in population and economic patterns. In the midst of the Baby Boom and with veterans utilizing the VA home loan programs, the real estate market needed to grow quickly. This was the beginning of private lending for real estate. This time period shaped hard money loans in Houston as we know them today.

Because traditional lenders couldn’t make the fast decisions needed to keep up with demand, hard money lending came in to fill the gap. Hard money loans in Houston and throughout the nation helped buyers secure financing for residential and commercial real estate where traditional lenders just weren’t set up for the quick decision-making needed during this time.

Today’s Private Real Estate Lending

After the real estate crash in 2008, the government imposed stricter regulations on traditional lenders. This put restrictions on borrowers who didn’t meet the high qualifications. While this might have slowed real estate growth, hard money lending allowed borrowers to invest in property. Taking out a hard money loan in Houston today means using the equity on your property as collateral for your loan. Therefore, your private money lender in Houston is less concerned about your personal history and qualifications than the property.

Generally, a private lender can help you find financing solutions when traditional lenders turn you down. Additionally, hard money loans in Houston provide quick capital solutions to help you take advantage of opportunities as soon as possible. With the right private lender on your side, you can achieve your goals with hard money loans the same way people have done for over half a century.

At Texas Funding, we have been providing borrowers with creative collateral-based loans since 1982. We specialize in delivering hard money loans in Houston to individuals, institutions, and companies of all shapes and sizes. As a family owned and operated business in Houston, our team works with you to find the financing options that work best for your situation. Call us today at 1-800-833-0138 to learn more or to discuss your lending needs with our experts. We look forward to the opportunity to work with you.