Short Term Rentals

Hard money loans for rental properties can be approved quickly, often same-day, and funded within days

· Down payment of at least 20% generally required, 100% financing not available

· Poor credit scores and negative items on borrower's record may be overlooked by hard money lenders

· Cash-out refinance loan may be used to raise funds for down payment on new rental property purchase

· Cash reserves for potential vacancies, repairs, and unforeseen issues may be required

· Rental property loans from hard money lenders are typically short-term, with terms ranging from 6 months to 2 years

· Balloon payment due after agreed-upon term, exit strategy (refinancing or selling) should be planned upfront

· Hard money lenders focus on the value of the property and borrower's equity, overlooking issues that may be red flags for banks