The Differences Between Soft Money and Hard Money are Explained Right Here
When you’re finding a loan for making an investment, you’ll encounter terms such as “soft money” and “hard money.” Basically, you need to demystify the meanings between soft money and hard money to make an informed choice.
If, however, you aren’t aware of these terms that you may stumble on while dealing with a commercial loan broker, then you’ll be unable to make a proper buying decision. And that’s precisely why we’ve written this post. Here, we’re attempting to clear the air that’s often hung between hard money and soft money. So let’s get started, investors.
Hard money loans versus soft money loans
When you’re discussing hard-money loans, such as the multi-family hard-money fund, you’ll get that one for a specific set of uses. Before securing this loan, you’ll be given every detail on the repayment criteria. Whereas, a soft-money loan doesn’t come with a specific use that’s associated with it.
When you’re discussing a soft-money finance, you’ll notice that this one is a powerful combination of hard-money lending and traditional lending. And if you want a soft-money loan, you’ll be still expected to pledge any of your available assets as collateral. In the soft-money variant, your credit history is taken into account; if your credit history is favorable, you may get lower interest rates and a longer repayment term.
So once you understood this basic difference between soft- and hard-money loans, you’ll need a powerful commercial mortgage lender who can offer you any of the two variants. That’s it, people. Did you like the post? If so, you should share it with others and spread the word. One such reliable hard-money mortgage lender who has the expertise and experience to cater to your mortgage requirements is Park West Capital. Get in touch with this mortgage lender to explore the alternative-lending landscape.