All the lenders on this page offer hard money loans for investors who are looking for financing for their investment properties. Hard money loans are typically short term loans (6-18 months) that are based on the equity of the property, rather than than the borrowers income and credit. A borrower can usually have as low as a 600 FICO score to qualify. Hard money loans in Washington are typically utilized by real estate investors who are looking to quickly purchase or refinance an investment property.
The main reason why someone would get a hard money loan for their investment property instead of a conventional loan or bank loan is because their needs cannot be addressed by a bank or traditional lender. The reasons why these needs may not be met can vary:
1. A low credit score might not qualify for a traditional loan or bank loan.
2. Insufficient income may disqualify a borrower from getting a traditional loan or bank loan.
3. The borrower is converting the use of the property (for example converting a smoothie shop into a marijuana dispensary) or converting the property type (for example converting an office into a mall).
4. The borrower is attempting to get a rehab or construction hard money loan but is limited experience with rehab or construction.
5. There is a time crunch to get a loan closed quickly.
1. Speed and Efficiency
2. Flexibility
3. Higher Interest Rates
4. Collateral and Loan-to-Value Ratio
5. Exit Strategy
