Hard money loans in the Caribbean are not easy to source, lenders often want to see financials to make sure the client has the wherewithal to make the payments. This makes sense, but often clients are not able to supply sufficient income to qualify for the proposed mortgage. This is where hard money loans come in to play.
Hard money loans are easy to qualify for, not requiring proof of income or ability to debt service the requested loan. This is the primary reason a client would request this type of home loan. These loans are often used as a ‘bridge’ in order to get the client to a point where they are able to secure more traditional conventional financing.
The downsides to a hard money loan in the Caribbean are similar to those in the US or Canada, the costs. These loans are priced higher than most other types of mortgages due to the risk and short term nature of the loans. This cost is usually offset due to the clients ability to get the money they need, when they need it.
We are able to offer hard money loans for both residential and commercial properties. The costs for either will be much higher than a typical loan, as both will carry their own different risks. Depending on the reason and nature of the security will also affect the cost (or ability to secure) the loan.
Generally commercial loans that require hard money loans are of the ‘bridge’ variety discussed above. The property needed to be developed to a point where a bank will step in is most often the reason commercial clients come to us for these loans.
For personal borrowers, its usually a personal situation that requires the client to require a hard money loan. Once the personal financial situation has alleviated itself, bank financing again becomes the mortgage of choice. In the Caribbean, bank financing is not always an option however, so be prepared to pay more in interest.
Regardless of the type of hard money mortgage you require however, remember that equity will always be the key to qualification. Without the required equity (usually 50%), we are unable to assist you.
If you are in need of a hard money loan, talk to one of our Caribbean mortgage brokers today!