Hard Money Loans & Other Loan Types

The money one gets from a loan can be used in many ways. The borrower can use the money to start a new business, buy an engagement ring for your fiancée, or even buy your dream house. However, there are so many types of loans out there that it might get overwhelming at times. But these different loans may have a certain use. This type of loan is best used for this and this type of loan is best for that. It can get confusing but if you are one those looking for secure a loan and already have in mind what to use it for but don’t know which loan is best, then you have come to the right place. We will discuss the most common loans out there and the best ways to use them.
hard money lenders

property funding

The first type of loan is personal loans. You will usually find these loans coming from the bank. Based on the name, you can use the personal loan to get virtually anything provided that enough money is given. Most personal loans are unsecured. The money you will get from a personal loan can go from a few hundred dollars to a few thousand dollars. The lender will ask you for a form of income verification. Securing a personal loan only takes a few days and there are only one or two pages in paperwork. Some private money lenders provide personal loans, as well. The second type of loan we are going to talk about is the credit card loans. People who make use of credit cards get a loan which they will then have to pay off when the bills are send. Many people today like using credit cards because almost every institution accepts credit cards to pay for anything. When you get a credit card, you have around 5k to 10k in credit and the application for a credit is only one page. You can secure getting a credit card in a couple of weeks. The third type of loan is home equity loans. Any homeowner applies for a home equity loan which would go against the equity that the current house has. So when someone is applying for a home equity loan, he or she is borrowing money against the value of the home of the borrower. To be able to know how much in equity is available in the home is to subtract the remaining mortgage from the market value of the home of the borrower. People usually use this loan to add something to their home or do a renovation. This can come in the form of bridge loans. The last type of loan we will be talking about is a home equity line of credit loan. This type of loan is every similar to home equity loans where the borrower is loaning an amount against the equity of his or her home. The difference with this type of loan is that the credit of the loan is revolving. Because of this, the borrower is able to borrow a certain amount and after paying part of that amount, he can borrow more money again. This can come in the form of hard money loans.