Hard Money Loans in Chittenango
A remarkable deal on a fix and flip property located in a nice area of the city all of a sudden shows up — seems too good to be true. Expert property flippers, like the young couple on Flip or Flop, HGTV's reality flipping series, are able to bring in a gain of forty to fifty grand on a regular basis. Of course, you also know that their results are attributed to the fact that they're professionals, are knowledgeable in hard money loans, they understand market trends quite well and additionally, they are good at working a public auction to purchase their homes at a good deal. Having said that, you've also been cultivating your rehab and remodeling skills, have got a building contractor ready for the project and are positive that you can do a great job for this home.
But capital is usually a different problem altogether. A typical lending institution, for instance a bank, takes a minimum of 1 to 2 months to approve the mortgage and hand over the funds. Since most home owners would rather have a fast closing, it may be best to start searching for other funding alternatives.
With banks establishing tougher loan standards in the recent past, it is harder for a self-employed individual to get a home loan, especially if his credit circumstances are not flawless. So will a lack of funding keep you from pursuing your aspirations? Absolutely not, seeing as you also have the Chittenango, New York hard money loan option.
A hard money home loan in Chittenango provides what is regarded as essential to many real estate transactions — a quick closing of only a few weeks and sometimes less. Additionally, loans can be done for up to 70% loan-to-value of the "as is" value, as determined by a qualified appraiser. With rates starting off near 10%, hard money real estate loans may seem, initially, to be more costly as compared with traditional bank loans. But in reality, the rate of interest is not as relevant for these loans, simply because they are not long-term financing. The price tag on such short-term loans ought to be looked at on par with any other cost that you would need to meet for the project. And once you've flipped the property or home, recouping this expense is comparable to recovering the expense for all the bathroom upgrades you did.
Aside from that, hard money mortgages are not hard to qualify for, even if you have very bad credit. Chittenango hard money lenders do not take on a loan strictly based on the customer's credit score — rather they additionally assess the property, where it is located and how much it is worth, and the home's ability to pay back the financing on its own. Several other criteria that influence a borrower's eligibility for a hard money real estate loan include how much money he is able to put into a down payment, his former experience being a real estate investor, and price range of comparable, fairly recently sold residences in the vicinity.
If you happen to have stumbled upon a really good fixer-upper with a high chance of returns, you have also discovered a hard money lender in Chittenango who's willing to provide funding for your fix and flip ventures. Enter your info into the contact form or get in touch with us via phone and let's discuss your property or properties.
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