A residential hard money lender is set up to provide what is termed a non-bankable loan on property already owned by a prospective client—usually a home, be it a single family building, duplex, or another hard form of collateral. While banks and mortgage groups can and do take three to six months to close your loan, the Arizona Hard Money Lenders can ideally do it within the space of a week. They are also less likely to lets a hiccup in your financial history put a halt to the entire process.
Holding a mortgage on another property can hold you up with conventional lenders—your debt to income ratio appears here because the theory is if you already owe money, the less likely you will be able to repay another loan on time if at all. Another rule is that you cannot borrow through a bank on property that is in need of renovation–they are strictly interested in the current value of a property, not what it could be in the future.
Again, a hard money lender can work with you on these as well as the more odd things that could stop you. One being is if the property was used for other purposes than a home before and you are looking to make it into a family residence now, this is yet another point that a hard money lender will be more receptive to.
These are only some of the reasons that while perhaps never entering a would-be borrower’s mind can put an application in danger of rejection from a conventional lender. Private funding organizations and individuals tend to view these areas differently and not necessarily something that would prevent you from receiving funds.
You may actually save money by using these residential Arizona Hard Money Lenders since they can structure a longer repayment period for the loan than the standard types. The upfront fees and down payments that go with other loans are often not attached to these loans.
They are more interested in your collateral value as opposed to your credit score also while desiring that you have an average of 40 percent equity in your residence at the time.
Find out all you can about loans before making your first appointment with any lender, conventional or otherwise. If you are successful with your project, you will come away with a lot—professional contacts in the business, a growing portfolio and a firm reputation. All of these are good to have when you want to take on a larger project in the future.
Talk to your friends and colleagues who are in the field. Know the pros and cons of working with a residential hard money lender before becoming involved in the process.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.