Some people view Arizona hard money loans as a “last hope,” and usually avoid them because of the unfavorable connotation connected with them. The have established this reputation because the majority of debtors that take advantage of these solutions have a bad or minimal credit rating and can not be accepted by a bank or other money lender. Hard money loans often have higher interest rates than traditional loans, which also makes them unfavorable among some.
However, there are even more benefits to Arizona hard money loans than there are negatives. As an example, Arizona hard money lending institutions will go where standard money lending institutions won’t. They will trust a borrower that has unsatisfactory credit rating (or no credit score at all), without asking for job past or income history. As a matter of fact, Arizona hard money loans are equity-based, so they are even more dependent on the home value than they are on any of your details. Arizona hard money loans are an outstanding choice for short sales, buying foreclosed homes, and fix-and-flip projects. They are an creative way for both the borrower and the lender to profit.
Often times, lenders will provide around 80 % of the residence value. In many cases however, this number is generally at 65 %. The loans often tend to be much shorter than conventional financial institution loans, usually ranging anywhere from 6-36 months.
Qualification for Arizona hard money loans couldn’t be simpler to get. Considering that the loan is not based on the debtor’s credit or additional private financial records, those items are never ever taken into consideration. Hard money loans are based entirely on the assessed value of the home, or the LTV (Loan to Value) ratio.
Still, it is very important to keep a professional demeanor when looking for approval for an Arizona hard money loan. When seeking advice from a lender, be expert in dress and fashion, have as much information on the property as possible, and a strategy that you prepare to use when asking for the loan. Create a document containing all expenses and plans for the hard money loan. It couldn’t harm to include photos of the home as well.