Hard Money Loan in Arizona are used to purchase distressed properties to rehab them. There are several benefits to these types of loans. These loans are often short term in nature and offer interest only payments. Rates for these loans can be higher than conventional mortgages, sometimes up to 12% or higher. The loans, unlike conventional mortgages, can be funded in 15 days or less. As an investor, you can submit a loan as an all cash buyer. The duration of the loan is 12 months and paid off when the property is flipped or permanent financing is obtained.
If you are acquiring or rehabbing a property you may want to utilize a hard money lender. The time to close a Hard Money Loan in Arizona and the qualifications are more flexible then traditional financing. Hard Money Loan in Arizona are utilized by both short- and long-term investors. These loans are used for both short term fix and flip properties with terms that are 3 months or less, as well as longer term buy-and-hold or extensive rehabs that require 12 months or more before obtaining permanent financing or selling the property. The loans are usually interest only payments and there usually are no prepayment penalties. Upon completion of the project, you usually sell the property and repay the principal amount.
Investors like Hard Money Loan in Arizona because of the very low threshold of pre-qualifications, quick funding times, interest only no principal payments, and its short-term nature. These loans have a higher expense due to the streamlining.
A few of the basis regarding Hard Money Loan in Arizona’s:
· Interest only payments, 7%-12%
· Terms 1-3 years
· Fees 1-10% points
An investor with a short time frame, usually 12 months or less, will find these loans right for them. They may also work for investors looking for longer terms if the property is right.
There are two types of investors that often turn to these types of loans:
Conventional mortgages are issued equal to 80% to 96.5% of the purchase price of a house. A borrower of a conventional mortgage will need to put down up to 20% or more of the purchase price. Hard Money Loan in Arizona issued by private investors issue loans based on loan to value (LTV) and after repair value (ARV) and some will be based on loan to cost (LTC). A LTV loan can be issued for up to 90% of the closing price. ARV is for fix and flip homes. Typically, lenders will offer 75%-80%.
· Term: 1-3 years
· Pre-Qualification: as little as 3 minutes
· Funding time: 1-15 days
· 7.5% – 12%
· Fees: 2-10 points
Loan qualifications for national Hard Money Lenders in Arizona:
· Bank statements for 2-3 months
· 550+ credit score
· Location of the property and price
· Prior experience of projects
At Level 4 Funding, we take the pressure off potential borrowers. We have simplified the loan process and can offer funding in as little as a day. Call us for a no-obligation quote.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: 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.