A Hard Money Loan is a specific type of asset-based loan financing in which a borrower receives funds secured by the value of a parcel of real estate or other qualifying asset. Hard Money Loans are typically issued at higher interest rates than conventional commercial mortgage loans or residential property loans, and are almost never issued by a commercial bank or other deposit institution. A Hard Money Loan is similar to a Bridge Loan which usually has similar criteria for lending as well as costs to the Bridge Loan borrowers. The primary difference between a Hard Money Loan and a Bridge Loan is that a Bridge Loan often refers to a commercial property or an investment property that may be in transition and does not yet qualify for traditional financing, where as hard money often refers to not only an asset-based loan with a high interest rate, but possibly a distressed financial situation, such a arrears on the existing mortgage, poor credit, bad credit or where bankruptcy and foreclosure proceedings are occurring.

Many Hard Money Loans are made by private money investors (Hard Money Lenders), generally on qualifying projects in their local areas. Typically the FICO or credit score of the Hard Money borrower is not important, making this a great commercial private money loan solution for someone with bad credit or poor credit, as the loan is non-FICO based and secured by the value of the collateral property. Typically, the maximum loan to value ratio for a Hard Money Loan is 65%-70%. For example, if the subject property is worth $100,000, the Hard Money lender would advance $65,000 -70,000 against it. The LTV rate for a Hard Money Loan is lower than on conventional commercial mortgage loans. This provides additional security for the Hard Money Lender in the event of an uncured default by the borrower and the Hard Money Lender is forced to foreclose on the property. Like a Bridge Loan, a Hard Money Loan is not intended as a long term financing solution, it is typically used as a temporary funding solution to get you the time crtitcal funding that you need until such time that you can qualify for and secure long term financing at more favorable rates and terms.

Don't let your bad credit, poor credit, or other difficult financial circumstances stand in the way of getting the commericial private money that you need...Call Aspire today at 866-966-1944 and speak to one of our Hard Money Loan and Bridge Loan specialists or you can simply apply online today.

Although Aspire is well known in the funding industry for providing SBA 504 Loans, a large portion of our funding projects are Hard Money and/or Bridge Loans. Although a  Hard Money or a Bridge Loan option is not the perfect product for every scenario, they are a quick and effective way to fund a deal. Through our Hard Money Lenders and Bridge Loan Funding Partners we have access to a large portfolio of private money investors that want to diversify their private money in this fashion. At Aspire, we feel that Hard Money Loans and Bridge Loans are an important alternative for many who own, buy, and invest in property and real estate projects that have bad credit or poor credit, or may have other difficult financial circumstances preventing them from qualifying for a conventional commercial mortgage loan. We have a successful track record of securing Hard Money Loans and/or Bridge Loans for our clients and working with them to qualify for and secure more attractive long term financing.

If you feel that a Hard Money Loan or Bridge Loan may be a good fit for your commercial private money needs, please fill out our online application and we will contact you to discuss your particular funding requirements. Or if you want to speak to one of our Hard Money or Bridge Loan specialists, please feel free to call us today at 866-966-1944