4 types of Hard Money Loans

By G. David Lapin On December 4 2023

Four key Hard Money Loan Categories, Spotlighting Their Unique Perks.

Navigating hard money loans can be confusing but grasping the nuances of each type simplifies the journey. This guide explores four key hard money loan categories, spotlighting their unique perks.

Transactional Hard Money Loans:
Ideal for property purchases, these short-term loans facilitate buying, fixing, and selling. Swift approvals, an easy qualification process, and higher interest rates make them advantageous.

Bridge Hard Money Loans:
Offering swift cash access, bridge loans streamline the sale and purchase process, eliminating the wait for an existing property's sale. Benefits include increased financing flexibility, rapid approval, and lower risk compared to transactional loans.

Rental Hard Money Loans:
Tailored for estimating renovation costs in property development, these loans provide quick access and flexibility. Features include an repayment options, expedited loan acquisition, and a lower likelihood of payment penalties.

Commercial Hard Money Loans:
Ideal for ventures in commercial real estate, these loans provide substantial amounts for larger projects. Their versatility extends to diverse property renovations, coupled with favorable Loan to Value (LTV) ratios.

Understanding the features and advantages of each hard money loan type is crucial in this diverse landscape. Whether you're a property flipper, developer, or commercial real estate enthusiast, choosing the right type is key to a successful venture.

For more information on our Hard Money Loans or Trust Deed Investments, call our office at 714.838.1474 ext. 102 or visit our:www.hanovermc.com

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Hanover Mortgage Company is California licensed only. Real Estate Broker – California Department of Real Estate. Broker License #01410448 │ NMLS I.D. Number: 337458. INTEREST RATES CAN CHANGE WITHOUT NOTICE. ASK US FOR CURRENT RATE INFORMATION. BORROWERS AND PROPERTIES MUST QUALIFY. CONDITIONS AND RESTRICTIONS MAY APPLY. Loan programs, amounts, rates and terms are subject to change without notice. Loan approval is not guaranteed and all loan applications are subject to verification of acceptable credit, income, employment, lien position and value of collateral in the sole discretion of Hanover Mortgage Company. Flood and/or property hazard insurance may be required. Additional fees, conditions, restrictions and limitations may apply. Not all programs are available in all areas. The interest rate for adjustable rate mortgage loans is subject to increase. Please contact Hanover Mortgage Company to determine your eligibility for a specific loan product. Hanover Mortgage Company does not offer financing for those transactions defined as ‘Covered Loans’ or ‘High Cost Loans’ in any state or federal law. Hanover Mortgage Company is a Mortgage Broker. Mortgage Broker fees will apply unless stated otherwise. Disclosure: Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured. State law dictates that we acknowledge that interest on trust deeds is not guaranteed. No investment is completely risk free and past performance is not a guarantee of future results. Before investing, investors must be provided applicable disclosure documents. Investment Products: Are Not FDIC Insured • Are Not Bank Guaranteed • May Lose Value • Are Not a Deposit • Are Not Insured by Any Federal Government Agency.

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