No one is more attuned to the precariousness of the real estate market than loan officers. With the constant fluctuation of market value, demand, and pricing, securing a loan for potential clients, or underwriting for investors is a difficult feat. One thing that is always helpful for a loan officer to have in their back pocket is options for clients. Hard money loans, with its less stringent underwriting process, can provide the flexibility loan officers are looking for in regards to helping their clients. Below, we will walk through a few ways hard money loans can be helpful for loan officers in particular.

Hard Money Loans and Loan Officers

Hard money loans provide flexibility and can match unique lending circumstances. In particular, hard money loans can be ideally used in situations where traditional lending methods fall short. Whether in the client’s personal financial profile, timing needed for a project, or unforeseen circumstances, when used appropriately hard money loans can help ensure real estate success when other options may not work. Here are a few scenarios in which hard money loans can help loan officers and their clients.

• New Homebuyers: Homebuying is a rigorous process, especially for new home buyers. For homebuyers who may not be preapproved through the traditional lending process, or do not have the proper financial background, hard money loans can be a great avenue for securing their home. 
• House Flippers: Another great match with hard money lending includes house flippers. With quick turnaround, profit seeking, and heftier risk associated with the home flipping process, house flippers are great candidates for hard money loans. Since house flippers are often seeking to turn a quick profit, the shortened lending period works well within their model.
• Prevent Foreclosure: Hard money loans can also be imperative in defaulting on properties. Instead of going through the foreclosure process, certain loans known as bridge loans are able to bridge the lending gap and pay off either remaining loans or sell a property. Loaners should be aware of the high interest rates associated with these loans, however when correctly used these can be instrumental to success of the property.
• Landlord upgrade: Hard money loans can be used with landlords as well, especially when trying to update properties that they manage. With their nontraditional lending model, hard money loans are able to provide sources of income as they calibrate the associated risk in their interest rates. This means that landowners can apply in order to update their property holdings.

In each of these cases, hard money loans are able to provide lending options in unique circumstances. Not only does this fill a need, but can provide unique lending opportunities to incur more income as a loan officer. If looking to provide more options and generate more income as a loan officer, hard money loans can be the perfect fit.