HARD MONEY LOAN TYPES

A bridge loan is a short-term loan used until a person or company secures permanent financing or pays an existing obligation. It allows the borrower to meet current obligations by providing immediate cash flow.

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Typical bridge loan scenarios are when a bank loan falls through, causing Union Home Loan step in and provide a hard money loan until the borrower can refinance at a different bank.

Fix & Flip loans allow the investor to borrow funds from a hard money lender with short term financing in order to renovate the property and resell it for a profit (also known as house flipping).

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Union Home Loan can act as a hard money lender, in fix & flip scenarios, when typical institutional loans would take too long or come with inordinate credit or income requirements.

An estate loan allows the heir to quickly borrow against real estate within the estate and receive funds to satisfy various immediate obligations of the estate.

 

Union Home Loan estate loans, backed by equity in real estate assets, can provide heirs and beneficiaries with much needed cash during the transition process.

A construction loan (also known as a “self-build loan") is a short-term loan used to finance the building of a home or another real estate project. The builder or home buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding.

 

Because construction loans are considered relatively risky, they usually have higher interest rates than traditional mortgage loans and can have funds released in tranches.

A purchase loan is when a borrower pledges equity in the property being purchased rather than providing equity in property that is already owned. 

 

Union Home Loan can act as a private money lender, for purchase loans, provided that the borrower is able to fund 40% of the purchase price (40% down payment).

Refinance loans are when the terms of an existing loan, such as interest rates, payment schedules, or other terms, are revised.  Additionally, refinance loans can be used to pay off other maturing loans or consolidate other debt.

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Union Home Loan acts as a direct lender of hard money loans in these scenarios often!

A cash-out refinance turns your home’s equity into cash by replacing your current mortgage with a new, larger mortgage. The difference between the two is given to you in a lump-sum payment.

 

Union Home Loan provides these loans for any purpose, including: home remodeling, student tuition, medical expenses, or any other financial needs!

A Foreclosure Bailout Loan is a mortgage loan that helps prevent a foreclosure from occurring on a property. It is typically used in emergencies in which a property owner needs their debt burden refinanced immediately to not lose their property. 

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Property owners cannot go to a traditional financing institution, like a bank, because traditional institutions do not offer financing in foreclosures.