It is possible to get a hard money loan for any type of property. However, there are certain types of property deals that benefit more from hard money loans than others. You should also consider what you hard money lender is will to allow.

Checking With The Lender

There are some hard money lenders who specialize in providing loans for certain property types. Most lenders will have a niche loan that they are more comfortable with. This usually relates to the type of property that they have the most experience in. It is important that you find out about this before you take the loan.

One of the types of properties that many lenders do not provide loans for are owner-occupier loans. This is due to the extra rules and regulations for these types of loans. All lenders will offer 1st position loans with few offering 2nd position as it increases the risks to the lender.

Type Of Deals For Hard Money Loans

There are certain types of property deals where hard money loans are ideal. If you are purchasing your primary residence, have good credit and no additional issues than traditional lending through a bank mortgage might be the right option. Hard money loans should only be an option if you are unable to get a bank loan or the loan is for a short period of time.

If you are looking at the following types of property purchases you should consider a hard money loan:

• Land loans

• Fix and flip properties

• Construction loans

• If you have bad credit and are unable to get a traditional loan

• If the seller needs to have a quick transaction

Hard money loans allow you to receive the funds much faster than a traditional bank mortgage. However, this is not always the best option and should be used for certain property purchases only.