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Hard Money vs. Traditional Loans: Which is Right for You?

Robert Orcutt

Choosing the right loan can make or break your real estate opportunity. Traditional loans are familiar, but hard money loans offer unmatched speed and flexibility when you need it most. Let’s explore the differences so you can decide what works for you.

 

The Key Differences


  1. Approval Process:

    • Traditional Loans: Require high credit scores, extensive paperwork, and weeks of waiting.

    • Hard Money Loans: Focus on the property’s value—not your credit score—allowing for faster approvals and fewer hurdles.

  2. Time to Funding:

    • Banks can take 30-60 days to close. With hard money, funding can happen in as little as 5-10 days.

  3. Flexibility

    • Traditional lenders often have rigid terms. Hard money lenders like A&A Funding offer customized solutions to fit your needs.

  4. When Credit Isn’t Perfect:

    • Hard money loans are ideal for borrowers who may not meet traditional bank criteria but have strong assets to secure funding.

 

When Should You Choose Hard Money?

  • Urgent Deals: If timing is critical and you need to close fast.

  • Bridge Financing: When you’re transitioning between properties and need temporary funding.

  • Unique Projects: When traditional lenders won’t consider a property outside standard guidelines.

 

Why A&A Funding?

At A&A Funding Corp., we specialize in asset-based lending solutions that traditional banks simply can’t match. Whether you’re closing on a property or bridging a gap, we ensure you get the funding you need—on your timeline.

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