Many people do not understand what Chicago hard money loans are and therefore do not look at them as a viable alternative. Hard money loans are mortgages from private investors to purchase or refinance real estate. Hard money loans are typically issued at much higher interest rates than conventional commercial or residential property loans and are almost never issued by a commercial bank or other deposit institution.
Today, high interest rates are the mark of Chicago hard money loans as a way to compensate lenders for the considerable risk that they undertake. Commercial hard money loans may not be subject to the same consumer loan safeguards as a residential mortgage may be in the state the mortgage is issued. Commercial hard money loans are often short term and therefore interchangeably referred to as bridge loans or bridge financing.
The reason real estate investors choose to use hard money loans is that they are a source to purchase and rehab property to make a substantial profit that they may not have without the use of this expensive money. To find a hard money lender in your state, simply fill out the form on our residential hard money loans page. Hard money loans are more expensive because they are not based upon traditional credit guidelines which protect investors and banks from high default rates. Hard money loans and lendershard money loans are a riskier, less restrictive, and generally easier to obtain form of real estate financing.