Hard Money Loans in Harrisburg
An outstanding bargain on a fix and flip property in an excellent neighborhood shows up out of the blue — seems so good that it is hard to believe. Professional residential home flippers, like the young couple on Flip or Flop, HGTV's reality flipping program, are capable of hauling in a gain of forty to fifty grand for the majority of homes. Without question, their rehabbing experience, knowledge of hard money loans, familiarity with the housing market, and auction talents have played an important part in their successes. On the other hand, you are certain that your superb rehab and remodeling abilities can help you do an outstanding job on this home — furthermore, you've already arranged to have one of the most suggested building contractors in town to handle this job.
But how can you get the necessary funding for flipping? If you approach a customary lender, like a bank for a mortgage loan, it's likely going to take, at the very least, 4-8 weeks for the acceptance to come through and the money to be distributed. With all the sellers looking for a fast closing, that does not appear like a great idea to you at all.
On top of this, banks have already been tightening their lending criteria as of late, rendering it more hard for a person to obtain a conventional loan if their credit situation is not perfect or he does not have a consistent salaried job. So will a lack of financing stop you from sticking to your dream? Certainly not, seeing as you always have the Harrisburg hard money loan option.
A hard money home loan in Harrisburg boasts what is possibly most sought after by real estate investors — a quick closing time of as little as 14 days. Additionally, loans can be made up to 70% loan-to-value of the "as is" home's valuation, as determined by a professional appraiser. A number of people consider hard money real estate loans to be higher priced than customary financing, since the interest rates of such loans typically start off at 10%. But the lengths of these loans tend to be rather short, making the rate less important. As it pertains to short-term loans of one or two years or less, you should think of them similar to any kind of other expense for the project. And as soon as you have finally turned the property, recuperating this expense is comparable to recuperating the expense for the bathroom or other updates you did.
Additionally, it's simple to qualify for a hard money mortgage, regardless of whether your credit score is not that great. The applicant's credit score isn't the single deciding factor for Harrisburg hard money lenders — they also look at the piece of real estate, what is it valued at, its location, and its potential to earn back their financial commitment if things do not work out as intended. Adding to that, if the applicant can demonstrate past experience in comparable real estate endeavors, can place down cash towards a down payment, and the value of similar houses in the vicinity works to his benefit, he has got an excellent chance of qualifying to get a hard money real estate loan.
So any time you come across a good and lucrative flipping opportunity, feel comfortable knowing you'll have a hard money lender in Harrisburg, equipped to loan you the capital you may need. Submit the contact form or call us to talk about your project.
A loan specialist will be in touch shortly