Most consumers believe that the cheapest loan is the best. But there are many benefits to Arizona Hard Money Loans that can overshadow the higher cost of these loans.
When you are shopping for something, the most appealing option is often the cheapest one. But in the case of Arizona Hard Money Loans, the price is not what makes these loans appealing. The fact that the loan is not based on the borrower’s credit score is one of the greatest benefits. This means that hard money is an option for those borrowers who are unable to finance a traditional loan through a bank or mortgage company. But there are many other situations that make these asset-based loans beneficial to many borrowers.
The fix and flip sector in real estate is booming right now. And many of the people who are making a good living buying homes in disrepair, fixing them, and then selling them do not want to take the time to secure a traditional mortgage. In most cases, these great deals sell quickly, and no one can get a bank loan fast enough to buy these underprices properties. In addition, it can be challenging to secure multiple mortgages through a bank, even when they are investment properties. But hard money is the perfect solution for real estate investors interested in fast flips.
Builders and contractors are also very fond of using hard money to fund their projects. Even a business can find it very challenging to get multiple loans on properties or for the construction of multiple buildings. Banks require a great deal of income for these types of loans, and they want to see a lot of money in the bank as proof that the loan payments can be maintained throughout the project. But a hard money lender is more interested in the value of the property. This makes Arizona Hard Money Loans an easy choice for construction companies and contractors even though the interest rates and fees are higher than a bank.
Those With Past Credit Issues
If you had credit issues in your past, you still might be paying the price even if you are in a great spot now. Things like a foreclosure will follow you long after you have sorted out your challenges and gotten your financial life back on track. You could have a great job, very little debt and now late payments for 24 months, but you are still going to face challenges getting a loan if you have a foreclosure in your credit history. But hard money lenders will not deny you a loan because of a past issue if you can make the down payment and the monthly payments on a loan.
Cost Is Not Everything
There are some cases where the cheapest option is the smartest choice, but Arizona Hard Money Loans can be a good solution for many borrower’s needs. Sure, traditional loans are cheaper, but they involve much more paperwork, a longer time frame to secure the loan and a much higher credit score. Builders, contractors, real estate investors, and consumers with low credit scores all know that hard money can be a great option when traditional lenders don’t meet your needs.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About: 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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