Finding a Lender Who Can Help If You Have Unique Needs

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People who want to buy a house or another type of property typically seek a mortgage through a bank, credit union, or online lender. A financial institution reviews an applicant’s income, credit history, and other information to decide whether to approve a loan.

For some people, qualifying for a loan through a traditional lender is difficult or impossible. If you’re in a financial situation that’s making it hard to secure a mortgage or if you need financing quickly, a hard money or “bridge” loan may be the solution.

What Is a Hard Money Loan?

A conventional mortgage is approved based on an applicant’s income and credit score. A hard money loan, on the other hand, is typically backed (or “secured”) by collateral, such as a house or another type of property.

Hard money loans are usually funded by private lenders or groups of investors, not banks. The process to get approved for a hard money loan can be much faster than the process to get a traditional mortgage.

A hard money loan typically requires a higher down payment and has a higher interest rate and higher fees than a traditional mortgage. The repayment period is also shorter than that of a conventional mortgage. Sometimes a borrower makes only interest payments for a period of time, then has to make a balloon payment.

Are You a Good Candidate for a Hard Money Loan?

If your financial situation is making it difficult to get a traditional mortgage, a hard money loan may be the solution. If you’re self-employed and can’t document your income, if you write off a large portion of your earnings, or if you have enough income to cover mortgage payments but have a low credit score, a hard money loan may be what you need to buy the house you want.

Hard money loans are popular among house flippers or people who buy properties, make repairs and renovations, then sell houses quickly for a profit. This is because hard money loans can be obtained much faster than traditional mortgages. If you want to buy a property to flip and you’re competing with other interested parties, being able to secure financing quickly can be an advantage.

If you’ve fallen behind on your mortgage payments and you’re worried that you might wind up in foreclosure, a hard money lender may be able to help. If you have a significant amount of home equity, you may be able to qualify for a hard money loan.

Apply for a Hard Money Loan

If you’ve applied for a mortgage through a traditional lender and been denied, if you need funding to buy a property to flip, or if you’re in danger of losing your home to foreclosure, Sachem Lending may have the solution. We offer hard money loans that are designed to help borrowers in these types of situations. Contact us today to learn more or submit an application.

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