Hard Money Loans in Holyoke
A remarkable deal on a fix and flip property in a good subdivision suddenly turns up — sounds too good to be true. You may have heard that veteran house flippers, similar to the couple on HGTV's Flip or Flop, turn a remarkable average profit margin near forty to fifty thousand dollars. And sure, they are aided in a major way by their professional know-how, auction skills and knowledge of hard money loans. Still, your rehab and remodeling knowledge isn't that bad either — in any case, you've already found an ideal general contractor to take on the job.
But how can you obtain the necessary funding for home flipping? When you approach a standard lending institution, much like a bank for financing, it can take, as a minimum, 4-8 weeks for your acceptance to come through and your funds to be distributed. Since most home owners would prefer a fast closing, you might have to start searching for additional funding alternatives.
With banks bringing in tougher loan guidelines in recent times, it's become harder for a self-employed individual to find a home loan, particularly if his credit score is not perfect. So does that mean you are without an option, but to give up your dream of getting into home renovating? Certainly not, due to the fact you can always go the Holyoke hard money loan route to pay for your rehab project.
If you put in an application for a hard money home loan in Holyoke, you're going to get what's probably most vital to real estate negotiations across the country — a fast closing of about fourteen days. Additionally, loans can be done for up to 70% loan-to-value of the "as is" home's valuation, as calculated by a licensed appraiser. At first glance, hard money real estate loans, with starting lending rates of 10%, appear to be higher priced than bank lending options. But in reality, the interest rate is not as pertinent for these loans, simply because they are not long-term financing. Short-term loans of a couple months to a handful of years are best approached in terms of cost of capital, similar to every other expense in connection with a project. After you fix up and unload the house, recouping this expense is just like recuperating the one for home appliances you installed in the house.
In addition, even an individual with poor credit will be able to qualify for a hard money mortgage. Holyoke hard money lenders don't take on a loan strictly judging by the applicant's credit score — instead they will assess the home, its value and location, and the home's capacity to pay back the loan without the help of the borrower. Additional factors that impact an individual's approval for a hard money real estate loan can include how much he is able to put towards a down payment, his former experience being a real estate investor, and price range of comparative, fairly recently sold homes nearby.
So if you have stumbled on a wonderful fixer-upper with a significant prospect of returns, you have also found yourself a hard money lender in Holyoke who is happy to provide financing for your fix and flip project. Enter your info into the form or call us to discuss your property or properties.
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