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3 Tips to Get Your Hard Money Loan Approved


Plenty of people take out hard money loans as opposed to your traditional bank loans. Hard Money Loans are easy to obtain, and can be processed in a day, whereas a traditional bank loan can take over a month. Hard money lenders can still provide funding if the borrower has issues such as low credit scores, no income history or recent foreclosures, loan modifications or short sales. These issues would keep a traditional lender from giving out a single cent, but as Hard Money Loans are easier to receive, they do have some requirements. Keep in mind the rate will be higher, but is an option many don’t consider.

First off, you need a down payment. Many hard money loans are denied because the borrower lacks funds he or she needs to purchase the property, or they don’t have enough equity in the property they currently own. If you expect 100% financing you’ll be laughed at. Most hard money lenders expect the borrower to have somewhere around 30% equity invested before the loan is even considered.

Secondly, make sure you have enough money to make the monthly payment. This is usually common sense but plenty of people think they can get around this. Your lender will analyze your potential to make payments. This means you need to prove good income, and at least some money in the bank. If you’re short on cash, you may need to partner up with someone who can prove reliable income. Otherwise your loan won’t be approved.

Lastly, make sure you have an exit strategy. Hard money loans are typically for short term uses, anywhere from one to three years. This means the remainder balance will be due at the end of the term. A good exit strategy will typically be needed to pay off the remainder of the loan, and many lenders will want to know what this plan is up front. An exit strategy could include: selling the property, selling a different property, refinancing the property with a conventional loan, and even refinancing with another Hard Money Loan.

It’s not terribly uncommon for a person to use a hard money loan when their credit is a mess. Hard Money loans can help you get on your feet while your credit recovers so you can actually be qualified for a conventional loan. As long as you keep these tips in mind, you’ll be that much closer to a hard money loan approval.

So if you’re curious about a Hard Money Loan, don’t hesitate to call National Realty Group at (800) 406-9606, visit us at or stop by our office. We’ll set you up with an agent who will answer all the questions you have and help you on your way to a loan.


About National Realty Group

National Realty Group was founded in October 1991 by Jeff Maas. It started as a two man office but soon grew to a medium sized office. One of the original agents formed a new home development company soon after. Steven Walker Homes is now a large national home builder. Southfork Mortgage Company Corp. was founded in April 1990 by the owner of a large home builder. Jeff Maas stepped in as its Broker in September 1993. With the help of Jeff Evens, Jeff Maas was able to expand the company. In July 1994, the owner of Southfork retired and Jeff Maas and Jeff Evens purchased the company. They continued the growth and soon built it into a multi-million dollar corporation. National Realty Group remained separate until Jeff Maas sold it to Southfork Mortgage in 1996. This allowed the owners to expand National Realty Group while allowing its agents to provide mortgage services to their clients. In 1996, a branch office of Southfork and NRG was opened in San Bernardino. It was later moved to Redlands in the most well-known office in the city. In 1998, they opened an office in Temecula in the Temecula Valley Bank office. The offices were expanded and closed 45 million in real estate and loan transactions in 1998. In 1999, Jeff Maas purchased the company from Jeff Evens becoming sole owner and broker. Shortly after the name was changed to National One Mortgage Corp. The company outgrew its 3000 square foot office in Riversideand moved to a building of approximately 6000 square feet. The growth continued at a spectacular rate. The company grew to over 40 agents within one year. The expansion continued with the addition of 2800 square feet and later adding more space for a combined total of nearly 13,000 square feet. At our peak we had over 125 agents and 12 employees in the Riverside office alone. During the summer of 2003, we opened an office in Temecula at the corner of Rancho California and Margarita. This office was soon bursting at the seams with 42 agents and 3 full time employees. Due to the increased demand for our unique programs, by the public and real estate agents, offices were opened in Corona and Ontario in early 2005. The year saw more amazing growth with offices opening in Moreno Valley, Hemet, Las Vegas and Norco. Rancho Cucamonga and Phoenix opened the first part of 2006. A Murrieta office opened summer of 2007. The economy has not been kind to many real estate and mortgage companies. We have remained strong and successful. Our business model of a One-Stop Shop provides the exact service and convenience the Home-Buying public desires and needs.


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