A hard money loan in Houston, Texas is a type of short-term bridge loan, a non-conforming loan for commercial or investment properties. Hard Money loans do not come from traditional lenders but rather from people or private companies that accept property or assets as collateral. This is different from a traditional bank loan which is based on a credit score.

Hard money loans typically have fewer requirements than traditional loans and are commonly used for real estate investors interested in flipping an investment property. These loans can help investors secure the property and turn a profit.

How Do Hard Money Loans Work?

Traditional loans are based on the cred worthiness of the borrower, Texas hard money loans are based on the property’s value. Instead of focusing on financials and credit, a hard money loan is focused on asset-based lending. Typically for a hard money loan, there is no minimum credit score or income requirement. Hard money loans are asset-based loans for commercial and investment properties.

A hard money loan is perfect for real estate investors who are looking to get an investment property or are looking to resell within a year. Even first-time real estate investors can qualify for a hard money loan. However, short-term, hard money loans will need to be paid back usually within 36 months as opposed to traditional loans which usually have repayment terms of 30+ years.

What Are The Typical Requirements For A Hard Money Loan In Houston, Texas?

Hard money lenders look at the property’s value that an investor wants to purchase. Typical requirements for a hard money loan in Texas are less strict than traditional loans, with some lenders do not look at your credit score or have very minimal credit score requirements.

The interest rates for these types of loans vary greatly depending on lender to lender. If you’re interested in a hard money loan but don’t know if it’s for you or your specific situation, LJC financial is a hard-money lender based in Houston, Texas, with experts ready to provide personalized guidance and direction regarding your financing options.