How Private Money Lending Has Changed Post-COVID

There’s no question that COVID-19 changed the trajectory of many industries, including the investment and private money lending sectors. Although most policies remained the same, the ever-increasing inflation is something that many Americans’ worry about, especially with the increasing interest rates—which makes it harder for the average borrower.

However, for private lenders, this means that they can set their rates and approval process, but how is this different than before? Here’s how the private money lending industry has changed post-COVID.

Consumer Borrowing Demand Has Changed

After a very challenging two years, private lenders have focused on newer deals and resources for various income classes instead of only tending to a specific market. Since COVID-19, private lenders have seen a drop in business and consumer borrowing unless it’s a government-backed program. As the economy continues to fluctuate, many people are unsure of the circumstances of their finances and are less likely to take a risk.

Although most private lenders don’t check credit scores, many consumers still worry about their credit scores. Consumers are trying to build their scores back up from the pandemic—seeking financial education and advice to help keep their credit healthy.

The Rise of Interest Rates

Since the pandemic, traditional banks and hard money loans have been neck and neck with the average national interest rate. According to, the average for a 30-year fixed mortgage is 6.56 percent, and hard money loans are often around eight percent. The rise could be because of the number of people buying properties and signing up for mortgages.

This could cause some competition between traditional banks and private firms. However, private lending always has the upper hand due to more lax qualifications and requirements. Thus, making private lending many businesses’ first choice.

The Future of Hard Money Lending

So, How has private money lending changed post-pandemic? Due to flexible terms and financing obligations, now is the best time to obtain a hard money loan. With the rise of growing multi-use properties and the popularity of flipping homes for profit, it will pay off to safeguard your investments and make financial moves that will benefit you in the future. Contact us if you’re looking to invest in real estate properties or need help funding a property rehab! At Val-Chris Investments, we’re a trustworthy hard money lending company always ready to fund someone’s dream.

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