Is Arizona Hard Money Really “Hard”?
If you’re new to the money lending world, the term “hard money” might sound a bit intimidating. I can be the first to tell you that it’s really not. There is soft money and hard money in the world of Mortgages, but without going into extensive detail, let’s just say the two are different. Arizona hard money is based upon hard assets. In all aspects, hard money is essentially the easiest to get approved for.
Arizona hard money Mortgages are equity-based—so it’s about the assets, not your credit, income, or financial history. However, some hard money lenders will want more information about you; but, for the most part, they are more interested in the property you are looking to buy.
There are a few different types of Arizona hard money Mortgages. First, there are commercial hard money Mortgages. This is for commercial properties, not personal properties.
Then, there are business hard money Mortgages. This is where the Mortgage is based upon the hard assets of a business such as accounts receivables or cash flows.
The other (and perhaps most common) is residential hard money Mortgages. These hard money Mortgages are usually for individuals or families looking to fix up a property or purchase their dream home.
Keep in mind that an Arizona hard money Mortgage is not a signature Mortgage. (A Mortgage without any assets whatsoever, but based on credit score, work history, income, etc.). If you’re looking for a signature Mortgage, talk to your bank about that. The whole purpose of a hard money Mortgage is asking for a Mortgage based on the property you are looking to invest in.
That’s something that you should ask your bank to do and your bank is going to look at your credit, job history and all kinds of stuff and they are going to determine based upon you, not based upon your collateral because you don’t have any.