Do Hard Money Lenders Report to Credit Bureaus? What You Need to Know!

Do Hard Money Lenders Report to Credit Bureaus

Do Hard Money Lenders Report to Credit Bureaus? What You Need to Know!

hard money lenderhard money lenderIn finance, hard money lenders are an excellent option for borrowers who want something other than a traditional loan. The biggest question people have when asking about hard money lenders is “do hard money lenders report to credit bureaus”? We think it is essential to know where your loan is being reported to.hard money lenderhard money lender

It is important to know why hard money lenders are a popular options. Hard money lenders provide short-term loans that are typically secured by real estate. Of course, these loans are usually for house flipping or something related to real estate investing.

Why Use Hard Money Lenders? 

Hard money lenders are convenient because they do not use traditional options such as banks. These hard money lenders are private investors who use their own money to lend to borrowers. Also, lenders are known for their quick approval process. This can make the wait time shorter if you are in need of a loan sooner rather than later.

There are several different reasons why you should use a hard money lender. Below are some great reasons why we love hard money lenders:

Fix and Fliphome renovation

If you want to do some investing in real estate, hard money lenders could save you a lot of time. When someone thinks about real estate investing, you may think of renting and fixing up houses. Taking on a fix-and-flip house is not an easy task and is time-consuming.

The last thing you want is to get a fix-and-flip house and then have the paperwork take forever. A hard money lender can get you the money you need faster than a traditional loan. The amount of time for the loan is usually shorter.

Interest Rates

One key difference between hard money loans and traditional loans is the loan period you have it for. Hard money loans have a shorter loan time than a traditional loan. Because of this, the interest rates from hard money lender are usually higher versus long-term loans. But you can use this in your favor if you pay the loan off earlier than the original time. It may be problematic if you do not consider the interest rate and what it adds up to.

Hard Money Lenders

Hard money lenders are private individuals and are not tied to a company or major corporation. This allows them to cut through some of the red tape that comes with traditional applications. Hard money lenders take a look at loan applications and choose borrowers based on the value of the property.

This is different because most banks and credit unions look at a borrower’s credit score. What does this mean for you? It means that even if you do not have the best credit there’s still a possibility of getting a loan.

Real Estate Investmenthome for sale

The world of real estate can get crazy at times. It can have highs and lows just like the stock market. Different areas are hot spots for real estate while other areas are slower in terms of business. Spend some time thinking about what you want to improve and where it is going to be located.

Since hard money lenders are individuals, they may just offer several loans to improve the area in which they live. If you live in a state that is growing, such as Utah, it can be a great place for private lenders to offer hard money loans.

Bad Credit

There are a number of reasons why some people have bad credit. It may be because of financial situations, past financial decisions, and other unforeseen circumstances. This can take a major toll on your ability to get housing, and loans and live your life. It also takes a long time to rebuild your credit score.

A hard money lender can be your solution to get help with your real estate endeavors. Since they do not look at your credit score, you may be able to secure a hard money loan while not having the best credit score. A real estate investor can help you navigate applying for hard money loans.

Do Hard Money Lenders Report to Credit Bureaus?

The short answer is no, hard money lenders do not report to credit bureaus. What they typically do is have a mortgage broker or investor that they go through. You will work with the company or individual to get the hard money loan.

This is a nice option if you are looking to avoid using your credit. What you do need to be aware of is that hard money loans will show up on any background searches. They will also show up on asset searches.

Apply Today

Fill out our application on our website and we will send you a response. This makes the application process easy and shows you what your options are with loans and other investing opportunities. Nelson Funding focuses on companies that need financial loans or looking for investment opportunities. If you need financial help and are a commercial company, browse all of our options and see what is the right fit for you.

Take a look at all of our options when it comes to finances. We do offer several real estate investment options and hard money loans are something that we do offer. You can find that we offer direct lending, white-label lending, and equity placement.

Let us help you out. We offer a lot of services with real estate and investing. If you want to take out a hard money loan, give us a call or make an appointment. We are located in Salt Lake City, Utah, and are open from 9 am to 5 pm Monday through Friday.


Nelson Funding

Fast Commercial Mortgages