California Hard Money eligibility - Level 4 Funding Private Hard Money

If all you know about financial lending institutions and the finance world is that getting a loan is difficult–and perhaps, not in your near future–you know enough. That’s OK, too. The majority of people actually don’t know much about loans and borrowing money and they don’t bother to find out information on them until they need one. If you already know you cannot qualify for a loan, or if you have been declined financing for your home purchase, an California Hard Money loan could be just right for you.

Getting approved for an California Hard Money loan is really simple. With California Hard Money loans, you don’t have to worry so much about your personal financial profile. In fact, things such as credit, income, employment history, and ability to pay don’t have much to do with it. These types of loans are equity-based, so it’s more about the property than anything else.

Considerations in the California Hard Money world

The first and most important thing lenders consider is the equity of the property. Is it worth it? Or is your investment project just going to turn into a hot mess? Hard Money lenders consider the LTV (loan to value) ratio between the amount you want to borrow and the value of the property. For you, this usually means approval of a loan for an amount between 65% and 80% of the home value. I

Do you have any other liens on the property? Hard Money lenders take into account if you have any other previous liens. If so, you may not get approved for a loan. Hard Money lenders will not agree to loan money on a secondary basis. They must be the PRIMARY lienholder. Still, this is always worth checking into.

One of the main reasons people seek Hard Money loans is because they do not have the credit or income level necessary to qualify for a loan from banks or other lending institutions. So, as stated before, qualifying for California Hard Money does not mean that you have to have a good financial past. Again, these loans are equity-based. (Although, good credit can never hurt a person.)

Overall, California Hard Money loans are less restrictive and easier to qualify for than other loans. One of the great things about these types of loans is that you get to work out the logistics of it personally with your investor or lending company. Many people find that California Hard Money loans are viable and trustworthy places to get the money they need quickly and easily.

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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