“Hard money” is a common term often associated with loans compared to the potentially lesser-known “soft money”. There are similarities between, but the differences are also considerable.
Fort Lauderdale, FL -- (SBWIRE) -- 09/17/2019 -- With hard money, it typically involves a loan intended to provide funding for renovation and improvement of a property, or perhaps as a bridge loan. The money is secured using the equity of the property. The loan terms are short, as little as a few months in some cases. Interest rates tend to be high because investors are concentrating on property equity versus examining a borrower's credit history.
Soft money loans are similar to hard money loans in collateral which also involves the equity of the property. Unlike hard money, however, a borrower's credit and finances are closely examined. Hence, loans have a lower interest rate but a longer period of repayment. Soft money loans may also require a longer time to process.
Hard money may help with improving a poor credit rating. Should a loan be repaid successfully, the borrower may have the option of reporting it to the credit bureaus, in turn improving the credit score.
About Monroe Funding Corporation
Monroe Funding Corporation is a direct equity lender serving clients throughout Central and South Florida, specializing in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get clients to the closing table quickly and professionally. For more information on hard money loans Miami, please call 954-816-0388 or fill out the application.