Bad Credit: Can You Get A Hard Money Loan?
Can you get a Hard Money Loan With Bad Credit? The answer is yes. Of course you can. Foreclosures, bankruptcies, low credit scores, short sales. No problem. And why? Why is a hard money lender going to lend to you if you have bad credit, whereas a bank won’t? Well the answer is because a hard money lender is an asset based lender. This means that a hard money lender is lending on the real estate as collateral. Now a regular lender looks at the Four Cs. The four Cs when they’re determining whether to approve a loan or not approve a loan. Credit is one of the four Cs. But what are the others? Collateral. Which is what we
mentioned, the real estate, the property, character, the experience of the borrower or other characteristics about the borrower to weigh in into the lending decision. And then finally the cash, how much cash do you have to bring into a purchase or if you already own the property, how much cash has been put into the property to date? When you’re searching for hard money lenders and you’re comparing your options among lenders, make sure you know what the minimum credit score requirement is of that hard money lender because some hard money
lenders yes they do, they have a minimum credit score requirement. Know what that minimum requirement is before you get too far in the application process. This is Corey Dutton. I’m a private money lender and if you have any other questions
about credit leave them in the comments
section below. Thanks for watching.