How to Get a Loan With Low Credit
Getting a loan isn’t an easy task, and if you have poor credit, it can almost feel impossible. Luckily, there are options out there, even if you’ve been previously denied from a bank. If your credit score doesn’t meet the level demanded by banks and credit unions, your best option for a residential or commercial loan is a hard money loan.
What are hard money loans?
Hard money loans are provided via private funding. This means that private investors provide you with funds through a licensed lender, which allows for a more streamlined process with more relaxed qualifications (aka, your poor credit). These low credit loans allow individuals access to collateral-based hard money, which is focused on your income and ability to pay instead of credit or previous loan rejections.
A Loan to Fit Your Needs
Hard money can be used for both residential or commercial real estate properties, meaning whether you’re looking to finance your dream home or your business office, hard money loans can help you do just that. Borrowers can choose between new purchases, refinancing, second mortgages, and construction loans. New purchases and construction loans can be repaid over two years, while refinances and second mortgages offer terms of up to five years.
Down Payment or Equity Requirements
In lieu of those often unfair credit score practices, hard money loans are available to those who can meet the down payment and equity requirements.
For construction loans, if you can make a 40% down payment on your land purchase or 20% down of the construction budget, you’re eligible for between $100,000 and $10 million. 35% down, for new purchases, gets you between $40,000 and $10 million.
For refinances, 35% equity in your Florida property makes you eligible for up to $10 million, while second mortgages require 30% equity for up to $25,000 in funds.
Are These Loans for Me?
If you have been turned down for a loan by banks or credit unions due to your low credit score, let the folks at Benworth Capital get you started with a low credit or bad credit loan. The bottom line is that we specialize in loans for people with bad credit. If you meet the aforementioned requirements and have a steady income, a hard loan from Benworth Capital could be your ticket to the capital you need.