Hard Money, Fast Turnaround
Category : Blogs
Why are hard money loans generally so short?
While Fulford Lending remains flexible, most hard money lenders generally lend money for terms of six and twelve months on average. This can put borrowers in a bind and some are excluded from working with you all together. If the borrower can make payments and the LTV is good, why wouldn’t you offer them a refinancing option? The reason is lenders rarely lend strictly their own money. They lend from a pool consisting of investors and colleges. These investors don’t want their money tied up for long, so they demand short cycles for the loan to be paid in full. This also makes sense for the lender because he charges points at the creation of each new loan. The short stick goes to the customer. Conversely, more favorable time tables are found in lenders who use their own money and are free to adjust as they see fit.
Food for Thought,
Nathaniel S. Fulford.