If all you know about financial lending institutions and the finance world is that getting a loan is difficult–and perhaps, not in your near future–you know enough. That’s OK, too. The majority of people actually don’t know much about loans and borrowing money and they don’t bother to find out information on them until they need one. If you already know you cannot qualify for a loan, or if you have been declined financing for your home purchase, an Arizona hard money loan could be just right for you.

Getting approved for an Arizona hard money loan is really simple. With Arizona hard money loans, you don’t have to worry so much about your personal financial profile. In fact, things such as credit, income, employment history, and ability to pay don’t have much to do with it. These types of loans are equity-based, so it’s more about the property than anything else.

The first and most important thing lenders consider is the equity of the property. Is it worth it? Or is your investment project just going to turn into a hot mess? Hard money lenders consider the LTV (loan to value) ratio between the amount you want to borrow and the value of the property. For you, this usually means approval of a loan for an amount between 65% and 80% of the home value. I

Do you have any other liens on the property? Hard money lenders take into account if you have any other previous liens. If so, you may not get approved for a loan. Hard money lenders will not agree to loan money on a secondary basis. They must be the PRIMARY lienholder. Still, this is always worth checking into.

One of the main reasons people seek hard money loans is because they do not have the credit or income level necessary to qualify for a loan from banks or other lending institutions. So, as stated before, qualifying for Arizona hard money does not mean that you have to have a good financial past. Again, these loans are equity-based. (Although, good credit can never hurt a person.)