The Coronavirus, or Covid-19 has so far infected over a million people globally and has not stopped spreading viciously. The pandemic has plunged the whole world to a standstill, and the property market is no exception with mounting pressure on the supply and demand. Many businesses and operations are severely clobbered by the outbreak and it’s going to get worse before it gets better. The sense of uncertainty will lead to slower demand as businesses and occupiers will likely continue to postpone major expansion, purchases or relocation decisions. The effects on real estate will vary by sector and market, and the extent of the effects will depend upon the duration of the economic shutdown. Many businesses and even individuals are forced to take hard money loans and probate estate loans to tide them over this extremely difficult time.
How Falling Mortgage Rates Will Affect Your Loan Options
In March 2020, the Federal Reserve took steps to keep money flowing through the mortgage financing system. The actions include two rate cuts, were part of the central bank’s broader efforts to protect the economy from more damage from the COVID-19 pandemic.
Lower mortgage rates will help those stressed by temporary employment losses and business losses. The decline in rates has stoked another refinancing boom and greased the wheels for would-be home buyers. Mortgage application data has shown that a growing number of Americans have been applying for loans to finance the purchase of a new home, which is a positive sign for the real estate industry.
Why a Hard Money Loan Can Be a Great Option During This Time
The coronavirus pandemic is damaging economies faced by countries all over, causing businesses to close, lay off workers and reduce their hours. Many households are unprepared for the swift financial blow. There are a few potential avenues for those impacted financially to access emergency money in a pinch. One of the ways is through hard money loan.
When you need a loan quickly or when traditional lenders will not approve a loan, hard money may be a great option, especially in unprecedented times like what the world is grappling with now. Hard money lenders take a different approach: they lend based on collateral securing the loan, and they are less concerned about your ability to repay. Should anything go wrong and you are unfortunately unable to repay, hard money lenders can get their money back by taking the collateral and disposing of it.
The Federal Reserve’s cut on short-term interest rates by half a percentage point in an effort to protect the economy from more damage from the COVID-19 outbreak is presenting more mortgage options for shoppers.
Real estate investors and property owners in California who are looking for California hard money lenders during this tough economic time can go to North Coast Financial for a wide variety of hard money loans. Whether the real estate is residential or commercial, investment property or owner occupied, business purpose or consumer purpose, North Coast Financial has a hard money loan program to help the borrower accomplish the borrower’s real estate goals.