Money Lenders – Hard Money Verses Direct Lenders


In bad economic times people are finding it difficult avoiding going into debt. Like most people, you probably have your fair share of debt and expenses. Even people who may have previously been financially secure can run into situations, such as a lengthy illness resulting in unexpected job loss or a collapse of a small business.

Unlike traditional lenders, money loans require only basic information to qualify:

Be at least 18 years old.
Earn at least $1,000/mo. after taxes.
Be employed for at least 90 days at your current job.
Have a checking account in your name.
Provide home and work telephone numbers, and an email address.
Be a U.S. citizen or permanent resident.

Two Types of Lenders:

Hard Money Lenders

Hard money lenders are usually private individuals with cash to lend, though they may be set up as a formal lender. Interest rates tend to be quite high – 10 percent is not uncommon – and down payments may be as high as 30 percent.  Hard money lenders are typically used for short-term loans that are expected to be repaid quickly, such as for the purchase of an investment property.

Direct Lenders

A direct lender is one that originates ‘ own loans, either with its own capital or from borrowed channels. These lenders do not act as agents for wholesale lenders. Direct lenders are usually thought of as retail lenders because they do not involve third parties or middlemen in making loans to consumers.

Learn About Emergency Lenders For Unexpected Troubles

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