(Arizona Hard Money Loans are a very useful financial tool for many borrowers. And there are several reasons that hard money can be a great option.)
As soon as a person begins to research Hard Money Loans in Texas, the first bit of information to jump out is that the interest rate is higher than that of a traditional loan. Current hard money interest rates are somewhere between 10 and 15% for most borrowers. But paying the higher interest rate is a much better choice than missing an opportunity in most cases. Arizona Hard Money Loans are not just for people with poor credit, though they are a viable option for them. Many other borrowers choose to use hard money for its other benefits.
Hard money is funded by a private lender so one of the biggest benefits to borrowers who are real estate investors is the speed for approval and funding. The process is much faster because the lender is primarily interested in the value of the collateral and not the credit history of the borrower or his or her current credit score. The property evaluation will be used to determine the amount that the lender is willing to loan the borrower. The loan to value rate is almost always around 70%, meaning that the borrower can request a loan for 70% of the property value and no more. This process is fast and simple making hard money a viable option for a fast deal.
Arizona Hard Money Lenders are also much more flexible than the large banks and mortgage companies. There is no underwriting department who sets the terms for the loan. The borrower and the lender can sit down and agree to terms that are mutually beneficial. This can include the length of the loan, the repayment schedule and even the fees and other costs associated with the loan. In some cases, the lender will even lower the interest rate if the loan to value ratio is lower than 70% as there is more instant equity in the property. All of this flexibility can make a private lender a very valuable resource.
Easy Approval
Many borrowers fail to qualify for a traditional loan due to bad credit or even a high debt to income ratio. And in some cases, this is a sign of financial instability. But for a real estate investor, it is not unusual to be carrying multiple loans for multiple projects. Traditional lenders have no way of accounting for the types of debt being carried to offer these investors and exception. However, Arizona Hard Money Lenders will overlook this in many cases.
Multiple Benefits
Arizona Hard Money Loans offer many benefits to meet a variety of borrower’s needs. The flexibility to customize loan terms, the fast approval and funding and the less stringent personal credit qualifications help many consumers and real estate investors who need to borrow money. Private lenders are very willing to work with most borrowers and will evaluate requests to determine what they feel is a fair interest rate and cost for the loan being requested.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
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.
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