Hard money loans are very similar to bridge loans, with the primary differences being that most hard money loans are made by private companies and there are higher down payment requirements. Like bridge loans, hard money loans have short terms, higher interest rates and interest-only payments. They are also easier to qualify for and faster to fund than a traditional mortgage. In many cases, they can fund faster than a bridge loan.
Soft money loans are a hybrid between a hard money loan and a traditional mortgage. Unlike hard money lenders, soft money lenders will place greater weight on your creditworthiness and the strength of your application. This means you’ll get a lower interest rate, lower down payment and longer terms than with a hard money loan. Like hard money loans, soft money loans are also quick to close. They can be a good option for borrowers who need to move quickly on a property but don’t want to pay the high rates that come with a hard money or bridge loan.
PMF Partners can refinance your low loan to value commercial real estate and give you cash out to pay off or pay down other debt. Additionally, we often partner with American Finasco, a company that can help with commercial debt reduction or debt settlement. Both options will help decrease your debt-to-income ratio. Feel free to contact us with any questions, or to run any hard money type loan scenario by us. You can go to our website, click on “Request a Loan Now” and fill out the online, interactive loan application. PMF Partners are a Hard Money lender.