San Diego Hard Money Lender

How do hard money loans work?

A hard money loan is simply a short-term loan secured by real estate. Unlike traditional lending institutions, hard money lenders are mainly concerned with the equity in the property and the location as opposed to a borrower’s credit score and financials. A major benefit to securing a hard money is the ability to close a hard money loan quickly. Most hard money loans take about five to seven days. TGP Funding can typically fund hard money loans in about four to ten days on average.

A large majority of our loan portfolio is here in San Diego. TGP Funding is experienced in the many neighborhoods within San Diego county and can provide quick loan decisions for our borrowers.

What does hard money lender mean?

Hard money is a way to borrow without using traditional financing options such as a bank loan. A hard money lender is typically an individual investor who invests in notes, or a private mortgage fund such as TGP Funding.

Do hard money lenders require down payment?

Yes, many hard money lenders DO require a down payment. They’ll also look at experience, and maybe a few other factors. The lower the LTV, the stronger the deal and you may get more favorable terms. Down payments for hard money loans typically range from 20% to 40%. San Diego hard money lenders such as TGP Funding may also cross-collateralize other properties owned by the borrower with equity if available.

Are hard money loans a good idea?

Hard money loans make sense in many situations. You cannot compare a bank loan to a hard money loan. For starters, they are typically interest-only payments. Also, hard money loans are typically meant as bridge financing. Most hard money loans are made for 12-24 months. They are meant as a short-term solution while the borrower secures long term financing or completed their business objective. Hard money loans are a good fit for wealthy investors who need to get funding for an investment property quickly, without any of the red tape that goes along with bank financing.

If you are considering working with a San Diego hard money lender, TGP Funding can provide more clarity on how hard money loans work.