Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track
There are many ways to get money for investing in your home foreclosures. You can use your own cash, post investor-related ads in the real estate section of your local newspaper, apply for a personal loan, use a credit card (I will discuss this further in another article), take out a mortgage loan, or use a hard money lender. In this article, we will discuss the whys and why nots of using hard money. What is a hard money lender? A hard money lender is a certain type of lender that loans money on the future equity of a refurbished property. Unlike conventional lenders, these lenders do not care what the how is presently worth. All they care about is what the house will be worth after it is fixed up and ready to sell. These lenders make it easier for entrepreneurs with bad credit and/or no money to make investments in home foreclosures. Some things to know about these lenders:
- Hard money loans are based on the value of the property after the house is fixed up as stated before.
- These loans are generally short-term loans; from 3-6 months.
- These loans can close in as little as two weeks.
- These loans do not have as much red tape conventional loans.
- These lenders give you the money to fix it up in a draw-type system.
- They may loan as 65% of the after repaired value. For example, a house for sale for $20,000 in as-is condition and after repairs it would be worth $60,000, they would loan you as much as #39,000, which leaves about $20,000 to repair the house.
- They usually do not require a down payment. The conventional lenders almost always require at least 20% down with good credit and may not even lend to borrowers with less than perfect credit.
- They will give you a loan even if you have bad credit, no pay stubs, or no tax returns. This opens the door for many more entrepreneurs.