Insula Capital Group

Hard Money vs. Conventional Mortgage Financing: Which Is Better?

aerial view of bank buildings in a financial district

Traditional lenders such as banks are notorious for being picky with their loan applications. But why is that the case?

Traditional financial institutions are governed by strict laws driven by the mortal age institutions. Fannie Mae and Freddie Mac. Often, when a borrower falls outside the requirements set by these institutions, it can be challenging to get a mortgage. To meet this gap in the market, private money lenders have stepped up with alternative options.

Insula Capital Group is also giving borrowers across the US similar opportunities for finding that banks are simply unable to offer. Learn more about the differences between hard money and traditional mortgage options and how a private money loan may be the most suitable option for your first or second mortgage.

What is a hard money loan?

Hard money loans are a form of bridge loans that are funded by private lenders. They are ideal for short-term projects, such as fix and flip properties, real estate investing, and renovations where the borrower needs a quick influx of cash.

In addition to short-term projects, Insula Capital Group is also unique as we are offering low-cost, long-term roles for residential projects as well. These loans can extend up to 30 years and come with fully amortized payment options.

real estate financing concept

Why should you get hard money loans?

Hard money loans come with several excellent benefits. The most important ones are:

  • Ideal for people with low credit scores: Conventional mortgage lenders require borrowers to have a comprehensive credit history and a strong credit score which shows they are financially responsible. However, hard money lenders don’t look at your ability to repay the loan but rather your existing assets and what you plan to do with them. This means that people with a poor credit score can also get access to real estate loans.
  • Quick and efficient approval: Instead of waiting 60 days to hear back from the bank, you can get approval within a few days when you apply for hard money loans. It’s ideal when you have a time-sensitive real estate opportunity at hand that you want to avail quickly. Additionally, you don’t need to put together extensive documentation when applying for the loan.

 Want to get a mortgage through private lending? Reach out to the leading private lenders at Insula Capital Group.

We’re dedicated to helping business owners and real estate investors get access to low-cost capital at competitive rates nationwide. Whether you’re looking to take out a mortgage or finance a real estate project, you can enjoy seamless loan approvals with minimal documentation and no junk fees. Reach out to us today with information about your hard money real estate loan, and we’d be happy to help.