Qualifying for an Arizona Hard Money Loan
September 24, 2012Why Choose an Arizona Hard Money Loan over a Traditional Loan?
September 24, 2012Making your dreams a reality through Arizona hard money
You know when you’ve found it. It is the perfect size, shape, and color. It meets all the needs of your family, it is comfortable, inviting, and needs to be YOURS. When you find the home of your dreams, the last thing on your mind is playing the waiting game with your lender. And, sometimes when you do choose to play the game, you don’t get approved for the Mortgage and the home has been bought out from underneath you. Believe it or not, there is a solution to this situation so many Americans find themselves in.
This is where Arizona hard money comes in. Arizona hard money Mortgages are Mortgages that are equity-based and processed and approved in as little as 24 hours. For the most part, hard money Mortgages are funding for foreclosed homes and short sales, but can also be used for fix-and-flip projects or property/land purchases. Since the item you wish to purchase ultimately becomes the collateral for your lender, it is at their discretion as to whether or not they will approve your Mortgage.
Most LTVs (Mortgage to Value Ratio) are anywhere from 60% to 80% of the home purchase. That means if you wish to buy a home for $100,000, you will be Mortgageed anywhere from $60,000 to $80,000 worth of the investment. Arizona hard money is a good way to put a lot of money down on a home and then pay it back rather quickly. This helps you avoid all the mess with banks having to check your credit, employment history, and pay stubs.
While interest rates can be fairly high for hard money Mortgages, many are short-term (about 6-36 months) so they can be paid off quickly. When acting on a short sale or purchasing a foreclosed home, the money you save could definitely be the little bit higher interest rate you would pay for the Mortgage.