You might be new to the term “hard money” and it might sound a little intimidating. Don’t let this scare you. It really isn’t, even though ‘hard money’ sounds a lot harsher than ‘soft money.’

In the world of loans, you may have figured out already that there is soft money and hard

money. Without going into extensive detail, let’s just say the two are very different. One thing that is different is that Texas hard money is based upon hard assets and not credit score or credit history. In all aspects, hard money is essentially the easiest loan for you to get approved for.

Remember that Texas hard money loans are equity-based, not credit based, so it’s about the assets, not your credit, income, or financial history. It doesn’t matter how bad your credit is. Usually. However, some hard money lenders are going to want more information about you, just to make sure you can repay the loan, however, for the most part, they are more interested in the property you are looking to buy, not your history.

What Kind of Texas Hard Money Loan is Right For Me?

There are a few different types of Texas hard money loans. Of course, the first is a commercial hard money loans. This is for, as you might have guessed, commercial properties, not personal properties.

The second type of loan is a business hard money loan. This is where the loan is based upon the hard assets of a business such as accounts receivables or cash flows. Again, not about credit.

The other (and perhaps most common) is a residential hard money loan. These Arizona hard money loans are usually for individuals or families looking to fix up a property or purchase their dream home.

Please remember that an Texas hard money loan is not a signature loan, or rather, it is not a loan without any assets whatsoever that’s based on credit score, work history, income, etc. If you’re looking for a signature loan, talk to your bank about that because that is not what hard money loans are. The whole purpose of a hard money loan is asking for a loan based on the property you are looking to invest in and getting that loan in a timely manner.