Hard Money Loans in Columbia
An outstanding buy on a fix and flip property located in a good neighborhood suddenly turns up — seems so good that it's hard to believe. Professional home flippers, much like the young married couple on Flip or Flop, HGTV's reality flipping program, are capable of bringing in a gain of forty to fifty grand for most homes. It goes without saying their rehabbing experience, understanding of hard money loans, familiarity with the housing market, and auction skills have played a significant role in their results. Still, your rehab and remodeling skills aren't bad either — aside from that, you've already located a good general contractor to tackle this job.
But where can you get the needed financing for flipping? If you meet with a standard lending institution, much like a bank for a mortgage loan, it is more than likely going to take, as a minimum, 30-60 days for your approval to come through and your funds to be dispersed. Thus if you happen to be anticipating a fast closing, you must recognize that this will cost you weeks, causing you to miss out on the home.
With banks adding harder loan standards in the past several years, it is now harder for a self-employed person to get a mortgage loan, particularly if his credit score is not flawless. So does that leave you with no other option, but to give up your ambition of venturing into flipping? Absolutely not, given that you also have the Columbia hard money loan option.
If you put in an application for a hard money home loan in Columbia, you're going to get what's possibly most vital to real estate transactions across the country — a fast closing of roughly 14 days. Furthermore, hard money lenders will often consent to funding up to 70% LTV of the property or home's valuation, as assessed by a licensed third-party evaluation. Some people believe hard money real estate loans to be costlier than ordinary loans, since the lending rates for these loans ordinarily start off at 10%. But the lengths of these loans are much shorter, making the rate less important. The cost of such short-term loans ought to be viewed much like every other expense that you would need to meet for the project. Right after you remodel and resell the house, recovering this expense is the same as recouping the one for home appliances you placed into the home.
Also, it isn't difficult to be eligible for a hard money mortgage, regardless if your credit situation is not that superb. Columbia hard money lenders don't authorize a loan exclusively according to the customer's credit score — rather they will assess the property, its location and value, and the property's capability to pay back the financing on its own. Additional factors that impact an applicant's approval for a hard money real estate loan include how much he can put into a down payment, his previous experience being a real estate investor, and price range of comparable, fairly recently sold homes nearby.
So if you have stumbled upon an excellent home to flip with a high potential for returns, you have also stumbled upon a hard money lender in Columbia who's ready to fund your rehab projects. Enter your info into the contact form or give us a call to talk about your property or properties.
A loan specialist will be in touch shortly