Loans are quite hugely common all throughout the United States, from private money loans to hard money loans and beyond. After all, life is quite expensive indeed, and sometimes affording the costs that life accrues can simply be too difficult to pay for out of pocket, if it is even possible in the first place. There are many ways to get loans and many types of loans to get. This article will discuss just a few of them.
For instance, college loans are quite popular – and quite necessary, to be perfectly honest – indeed. College loans have allowed so many people to obtain higher levels of education, an education that they would have in no way been able to afford if not for being granted a loan of some sort. From public loans to private loans, there are a number of different college loans that you can accrue – and you won’t even need to begin the process of paying them off until after you graduate college or leave school otherwise. Therefore, college loans are an important institution in our country, especially as the overall cost of going to college has only continued to climb with the years.
And college loans are certainly far from the only type of loan out there. The privately funded mortgage or other such type of mortgage loan is also popular and also very necessary for the vast majority of people who are looking to buy homes. After all, even the most affordable of homes are not something that the average person or family will be able to afford, as they are still likely to cost more than $100,000 – and often well over that, depending on the part of the country that you’re looking at. Therefore, the prevalence of the mortgage loan is only on the rise, with more than $9 trillion in mortgage debt owed all throughout the United States by the time that we had reached the beginning of this year. And this debt is only likely to grow in the years and even in the months that are ahead of us as well.
Hard money loans are also common among home buyers, particularly among those who buy a home with the intent of flipping it – renovating it, to put things more clearly – to be then sold again. Flipping a home has become quite common and many people are even able to make a living off of flipping a run down home and selling it for more than what it was originally purchased and renovated for. For such purposes, loans such as hard money loans are often considered to be the ideal type of loan.
There are a few things that one must know about hard money loans, however, before actually taking one out. For one thing, hard money loans are much shorter in length than other types of loans. Where some people will work to pay off their college loans for decades, hard money loans will typically need to be paid off in no longer than two years (24 months). In some cases, hard money loans will be best to pay off in as little as six months. They are also interest only and a type of loan that is only offered for non occupied properties. This makes hard money loans ideal for those who are looking to flip a home but certainly not for those who are looking to live in the home that they purchase.
Aside from homes and hard money loans, small business loans and other such private loans are also immensely common all throughout the United States. After all, when small businesses unfortunately fail, it is most likely to be due to a cash flow problem. Private loans in the form of small business loans can help to prevent this from happening. Small business loans are so popular that up to 40% of all businesses actually applied for one such loan throughout the course of the year of 2017 alone. This showed a slight dip in such loan applications from the previous year, but is still quite impressive, all things considered.