Hard Money Duration
How Long do Hard Money Loans Typically Last?
A hard money duration loan is typically used in a short term capacity, and normally in situations where a conventional mortgage may not be the tool to utilize in the situation. This could be for any number of reasons, but most times it is simply for the difference in the time that the loan is to be paid beck. Where a conventional mortgage can go from ten years and stretch into the twenty and thirty year marks. A hard money loan operates in the much shorter time range of up to normally five years although this may differ from lender to lender.
In the event that the property has a high turn around as well as is going to be auctioned or sold soon a hard loan may be the best option as the ability to get the cash required may very well attribute the the loan holders success. It should also be noted that properties considered in distress or sometimes vacant can also inhibit conventional mortgages. This is another situation in which a hard money loan has the potential to be a better tool then normal conventional mortgages.