How does Houston Hard Money Lending work?

Hard money loans in Houston – Texas Funding
The approval process for hard money loans in Houston is faster than traditional loans.

A Houston hard money loan is typically a short-term loan that is acquired by using real property or assets as collateral. These types of loans are normally granted to individuals by private lending companies instead of banks. The terms of this type of loan are normally higher risk for the lender because of the shorter repayment times hinging on the value of the property being offered up. While this might sound nice, if you don’t repay a hard money loan on time, the piece of property used as collateral is kept by the lender to help recuperate their financial losses. If you are looking for Houston hard money lending options, look no further than Texas Funding. We can help you secure financing for your dream project. At Texas Funding we provide loan solutions that are tailored to your needs as an investor or as a general contractor. We have been in the business for over 35 years and can help you achieve your financial dreams and goals. 

 

What is a Private Money lender?

Private money lenders are lenders that interact with the buyers directly, usually face to face, instead of through a bank. Sometimes this type of lender could be a group of investors or a commercial real estate investment group, or simply a family group willing to invest. At times, a private lender can provide financing for a variety of commercial or industrial endeavors much quicker than a commercial financial institution. Investing in real estate can be a lucrative endeavor for anyone, and at Texas Funding we can offer fast, reliable loan solutions that may help you with the acquisition of various properties. We understand finding the project of your dreams, and the need to move fast on financing. 

 

Collateral Backed Hard Money Loans

When you apply for a loan using collateral it is normally based on how much the value of the property is and not necessarily your credit score. Acquiring hard money loans through Texas Funding is usually simpler and quicker than with other banks because we will work with you to create a loan plan that works on your schedule.  While traditional lenders grant loans to individuals and investors based on good credit scores, it isn’t as much of a factor when you need a hard money loan. Secondly, private lenders will typically factor in any renovations or remodeling projects you do to the property before granting a loan. New businesses or investors with poor credit may not qualify for a traditional loan since many banks look at your credit history. Hard money loans from private lenders are based on the value of the collateral to secure the trade-off.

Hard money loans can have bad reputations because there are a lot of predatory lenders who target relatively new investors who don’t really have their footing in the real estate market. Big mistakes can occur such as signing a lending agreement thinking that they will be able to pay back the loan, when in reality the amount of money for the loan was too high, and not in proportion to the value of the provided collateral. The property can be foreclosed upon because the borrower can’t repay the loan in the time the financing is called. When the terms of a loan are difficult to understand from a borrower’s perspective, or if the lender isn’t upfront about costs, chances are the lender is probably predatory. Lenders are legally required to disclose the total amount of the loan along with expected payback timelines. A good way to avoid predatory lenders is to do your research before deciding on a lender. 

 

Why Choose Texas Funding? 

Choosing Texas Funding as your private hard money loan lender offers many options and advantages. We have been in business helping Texans get the hard money loans for 35 years and we would like the opportunity to help you too. We will work with you to provide optimal loan solutions for your lifestyle. We specialize in hard money lending because we know your time is valuable, don’t waste any more of it call us today!