Hard Equity Loan for Land Deals

Get Your Difficult Real Estate Deal Done Fast

Loans for Land Deals

Buying land associated with farms and ranches click here.

We have hundreds of lenders to look at your real estate loan to purchase or refinance a farm or ranch.

Limited Documentation

The real advantage is dealing with common sense lenders who will make the deal if you have enough skin in the game. Documentation is limited and extremely fast turn around times are not unusual. Don't wait, apply now and see what it will take to get your deal done.

A hard equity loan, also known as a hard money loan, is a type of real estate financing that differs from traditional mortgage loans.

Here are the key points that make hard equity loans different:

- Short-Term Nature: Hard equity loans are typically short-term loans. They serve specific purposes, such as funding real estate investments, property flips, or bridge financing between properties.

-Source of Funding: Unlike traditional mortgages, hard money loans don’t come from banks or institutional lenders. Instead, they are issued by private investors or companies. These lenders evaluate the property’s value and the borrower’s equity rather than focusing on credit scores or income.

- Asset-Based: The loan is secured by real property (usually the property being purchased or renovated). The lender assesses the property’s value and offers a loan based on a percentage of its appraised value.

- Higher Interest Rates and Fees: Hard equity loans often come with higher interest rates and fees compared to conventional mortgages. This compensates the lender for the increased risk associated with short-term, asset-based lending.

- Quick Approval and Funding: Hard money lenders prioritize speed. Borrowers can get approved and receive funds faster than with traditional lenders. This makes hard equity loans ideal for time-sensitive situations.

- Loan-to-Value Ratio (LTV): Lenders calculate the loan amount based on the property’s value. Most hard money lenders offer up to 90% loan-to-cost (LTC) ratio, which includes both the purchase price and rehab costs.

- Rehab Financing: Hard equity loans often cover not only the property purchase but also the renovation costs. Investors use these funds to improve the property and increase its value.

- Risk Considerations: Borrowers should be aware of the risks, including higher costs and the potential for foreclosure if they fail to repay the loan. However, for real estate investors, hard equity loans can be a valuable tool.

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Bridge Loans

Borrowers frequently turn to hard money lenders for a bridge loan. Hard money bridge loans may be used to close a transaction while waiting to sell one property and buying another.

A hard money loan may also be used to close an enticing real estate deal quickly and lets you worry about permanent financing later. Hard money loans are also perfect for flipping a property when the holding time will be short.

Close Fast

Hard money loans are also a way to close fast on residential properties that are to be held as investments. Investors can accumulate several properties using a bridge loan and then refinance to one commercial loan using the properties as collateral.

Whatever the reason, a hard money loan makes sense when there is money to made by doing the deal. You can price a loan offer online without a credit report, so you get a fast response.

Our lenders have been doing this type of lending for many years and has a network of loan investors that want to make loans.

Commercial Loan Application for USDA loans for rural properties including land, working capital, machinery, and equipment.