Can I Refinance A Hard Money Loan?

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There’s often a misconception that a hard money loan can not be refinanced. However, you do have options even when it comes to hard money loans.

There can be plenty of good reasons to refinance these types of loans. Consumers are facing challenges with all types of loans including mortgages, the increasing student loan debt crisis, and private loans.  This makes refinancing a smart move for loan holders looking to improve their monthly payments and avoid defaults.

Here’s how financial experts can walk you through refinancing a hard money loan.

Can A Hard Money Loan Be Refinanced?

Hard money loans can be refinanced. They can be refinanced through both hard money lenders and traditional lenders. A hard money loan can come with plenty of options for refinancing depending on the terms of your particular loan.

When Should You Refinance A Hard Money Loan?

There’s plenty of reasons to refinance a hard money loan. It all comes down to your financial circumstances and the goals you have for your project. Plenty of real estate investors choose refinancing as a viable option for adjusting their overall portfolio and assets.

Here’s why.

  • You need more time to complete the project or the sale of a property
  • You want to refinance your terms for better interest rates
  • You need to open up funding for your project
  • You can’t wait for a conventional loan and need funds quickly

Benefits Of Refinancing Hard Money Loans

There are several benefits for refinancing your hard money loans. The biggest of these have to do with improving your immediate financial situation. It works like this.

Refinancing your loan buys you more time and improves the situation for your investments. You can get extra time to complete a project before a loan comes due or lower your expected interest and payments. It’s all about improving your overall financial situation to open up your funds and let you complete your projects without being burdened by loan terms.

This is your financial outlook and refinancing can give you more options and more money down the road.

How To Qualify For Hard Money Loan Refinancing

In order to qualify for refining, you’ll need to have a few things in order. You’ll need all your documentation from your original loan, a strong financial plan in place, and a credit score that works with your refinancing lender.

The professionals at IMC Money can walk you through this process.

Refinancing With Professional Help

Refinancing a hard money loan is the right choice for your business. It frees up money and lowers future financial burdens. Get in touch with the loan refinancing team at IMC Money today to learn more!

A Proof Of Funds Letter In Hard Money Lending

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A proof of funds letter is a document showing a potential buyer that a real estate investor has the funds that they need to close the sale. This letter often contains information from the buyer’s loan provider as well as information about their company.

These letters are standard practice for real estate investment purchases. Real estate investors should know the process of handling the proof of funds letter inside now.

This is what real estate investors should know about a proof of funds letter.

Why A Funds Proof Letter Is Important

The current housing market is going through some major changes. Even the White House has stepped in to address some of the issues impacting the housing market. With such a competitive market, sellers have started to require proof of funds letters to ensure sails will go by smoothly.

When Should I Get A Proof Of Funds Letter?

Real estate investors typically obtain their proof of funds letter before submitting an offer for a property. This allows your hard money lender to underwrite the loan as well as ensure that funds are available for the purchase. This also shows the seller that you have all of your financial ducks in a row and you’re ready to close out the purchase.

How Do I Get a Funds Proof Letter?

The process for obtaining a proof of funds letter is very straightforward.

Your first step is to reach out to your hard money lender of choice. You should find a hard money lender that has experience working with real estate investors, favorable rates, and the professionalism that you can rely on. You will then have to submit an application which may or may not include a credit check.

Your hard money lender will then be able to issue you a proof of funds letter so that you can proceed with your real estate purchase.

Property Specific Funds Proof Letters

A property specific proof of funds letter is targeted for a specific piece of real estate. This allows the seller to have more confidence and your ability to close out the purchase and gives you financial clarity for the terms and conditions of your funding.

Get The Financial Services You Need Today

You need a financial services provider with experience working with real estate investors. IMCMoney has been working with real estate investors for years and their experienced financial team can work with you to handle everything from obtaining a proof of funds letter to a hard money loan.

Reach out to IMCMoney today to learn more!