A glass jar is tipped over, spilling a variety of coins onto a surface.

Hard money and private money loans are often used by borrowers who need immediate access to funds. Hard money lenders typically have an easier underwriting and loan approval process. Individuals whose application forms were rejected by traditional financial institutions can still get approved for hard money private loans Sonoma County.

What is a Hard Money Loan?

A hard money loan is a type of short-term, asset-based loan typically used by real estate investors, house flippers, or individuals to finance their real estate purchase. Hard money loans are usually offered by private lenders or investors, rather than banks and other traditional financial institutions.

Here are some key characteristics of hard money loans:

  • Asset-based: One of the most important factors that affects an individual’s hard money loan eligibility is the value of the property being used as collateral. A hard money lender is more concerned about the property’s value and the borrower’s equity in it than their creditworthiness or financial history
  • Short-term: Hard money loans are short-term loans with tenures typically ranging from a few months to a few years. They are ideally suited for real estate investors who require quick financing to buy or renovate properties.
  • Faster approval and funding: Hard money lenders have less complex underwriting processes than traditional financial institutions and therefore process loan applications more quickly.
  • Flexible terms: Hard money lenders may offer flexible terms and repayment schedules tailored to the specific needs of borrowers

What is a Private Money Loan?

Private money loans, also known as private lender loans, are offered by individuals or private lending institutions, rather than traditional financial institutions such as banks and credit unions. Like a hard money loan, a private money loan is a short-term loan that can be used to purchase or refinance a property.

Here are some key characteristics of private money loans.

  • Nature: Private money loans are offered by individuals (can be family members, friends, or acquaintances) or private organizations, who are willing to lend money for various purposes
  • Uses: Private money loans can be used for various purposes, such as to meet personal expenses or start a business
  • Approval process: The approval process for private money loans tends to be less formal. Nevertheless, many real estate investors prefer hard money loans because hard money lenders often possess greater expertise and the ability to create tailored lending solutions.

Altus Capital Group specializes in providing financial solutions for business purpose loans addressing a wide range of financing requirements. We offer a variety of loan options tailored to your unique needs. Contact us today at (707) 932-5887.