Question:

What is a hard money construction loan?

Answer:

A hard money construction loan is a loan offered for building or improving residential or commercial properties. The collateral for the loan is the value of the project after completion. Funds are scheduled for disbursement as work progresses.

Who needs a hard money construction loan?

Borrowers who can't quite qualify for a conventional construction loan may be told they need a hard money construction loan. This is especially true if you need construction financing for commercial properties. Hard money loans are usually private money and the state you want to build a commercial building may not be attractive to commercial lenders.

Some investors or those wanting a custom built expensive residence find it more convenient to turn to private money construction loan lenders because restrictions are much looser to compensate for the rates.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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