How You Know When to Use an Arizona Hard Money Lender
June 11, 2012Real Estate Investment Opportunities Using Arizona Hard Money
June 11, 2012Be Sure to Know the Terms of Your Arizona Hard Money Lenders
It is good to know what the terms are when dealing with an Arizona hard money lender so you can find the one that will fit your needs. Here are some of the terms you can expect to see from many Arizona hard money lenders. Typically they will only Mortgage you up to 70% ARV (after repaired value). This means that a hard money lender can Mortgage you up to 70% of what the home is worth in repaired condition. So if you find a home worth $45,000 in the condition it’s in, and needs $20,000 in repair work, and after it is repaired the current fair market value is worth $100,000, then typically they can lend you up to $70,000, which would cover the cost of the house and the repairs.
OTHER TERMS YOU CAN EXPECT FROM ARIZONA HARD MONEY LENDERS ARIZONA ARE HIGH INTEREST RATES. INTEREST RATES VARY FROM 12% – 20% ANNUALLY AND TERMS CAN LAST FOR 6 MONTHS TO A FEW YEARS. MANY TIMES THESE RATES VARY DEPENDING ON YOUR CREDIT SCORE AND EXPERIENCE. IN MOST CASES, THERE WILL BE CLOSING COSTS OR FEES TO USE HARD MONEY ARIZONA. TYPICALLY HARD MONEY LENDERS WILL CHARGE ANYWHERE FROM 2-10 POINTS JUST TO USE THEIR MONEY. ONE POINT EQUALS ONE PERCENT OF THE MORTGAGE AMOUNT. SO CHARGING 1 POINT ON A $100,000 Mortgage WOULD BE $1000. THESE ARE ALL IMPORTANT THINGS TO CONSIDER WHEN CHOOSING A HARD MONEY LENDER ARIZONA.
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