Purchase Loans Financed with Hard Money

Nationwide Hard Money Purchase Loan Brokers

Wave Private Money is an experienced San Diego, California-based hard money broker offering fast approvals and funding, low rates, and excellent customer service for various hard money loans, including purchase loans.

There are many reasons a borrower may decide to utilize a hard money purchase loan (also known as a private money purchase loan) instead of conventional financing to buy a property. Both residential loans and commercial loans can be funded using hard money.

A subject property for sale may be receiving multiple offers. Hard money loans can be approved and funded within days instead of traditional financing from a bank, which will take weeks or even months. A potential buyer who can offer a much earlier closing date than other bank-financed offers will stand out and have a better chance of securing the sale. The borrower can refinance and obtain traditional financing once the property is acquired.

Purchase Loans With Hard Money Financing  

Unfortunately, circumstances such as foreclosures, short sales, low credit scores, or bankruptcy may prevent a borrower from obtaining bank financing. Hard money lenders are less concerned with these types of issues on a borrower’s record as long as the loan-to-value ratio is an acceptable percentage. The borrower may be able to use a hard money purchase loan to initially acquire the property and refinance with a conventional loan in the future once time has passed or these issues have been cleared from the borrower’s record.

Banks will not typically give traditional financing to a trust, LLC, corporation, or non-profit organization. In these cases, a hard money purchase loan is the entity’s best option for obtaining financing. Traditional lenders will often not lend to borrowers who already own many investment properties. The bank views this scenario as too risky. The investor can turn to a hard money lender to secure a purchase loan and acquire the property. The property can be refinanced with traditional financing once other investment properties are sold.

Wave Private Money offers many other hard money loans, including bridge loans, fix and flip loans, investment property loans, probate loans, and refinance loans. Contact Wave Private Money now for more information.