Buyers Resource
Benefits of Hard Money:
Fast transaction. Transactions can close as quickly as a week.
Easy qualification for buyer. Sometimes the lender will base their loan on real estate alone.
Much fewer required documentation.
Disadvantages of Hard Money
High Interest Rates
High Fees including points. Average is 2 pts.
Shorter terms. Usually between one to five years terms
Benefits of Bank Loan:
Great Rates
Lower Fees including origination fee
Longer terms, usually 30 year terms
Disadvantages of Bank Loans:
Longer transaction periods. Transaction may require 30 to 45 or even 60 days to close.
Harder to qualify
Lots of documentation
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Disclaimer: The information in this website is provided for general informational purposes only. No information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter.
