hard money loans

Refinancing With Hard Money Lenders

Refinancing With Hard Money Lenders

Hard money loans can be a solution for homeowners in foreclosure. It allows them to pay off the foreclosing lender with a hard money refinance giving the homeowners additional breathing room to fix their credit or sell their property and obtain long-term financing.

Refinancing Steps

Obtain a list of hard money lenders in your area. Typically, they restrict their lending activity by geographical area because they make lending decisions based on their familiarity with the local housing market. The Internet is one of the best ways to find local lenders, but you can also ask for a referral from a traditional lender. In some markets, you might be able to find a mortgage broker who has knowledge with private money options.

Investigate each hard money lender. Each lender will have its own loan application process, loan terms and fees. The interest rate and points offered for this type of loan will be much higher than a traditional loan, so it is in your best interest to find the lender that will give you the best terms. Hard money is a legitimate lending source, but there are unscrupulous lenders. Check the reputation of each lender with your local department of consumer affairs and Better Business Bureau before initiating any transaction.

Prepare your loan documentation. Hard money lenders rely primarily on the loan-to-value ratio of the house you are refinancing to make a financing decision. Consequently, you are more likely to obtain a loan if you have enough equity in your house. Gather proof of the value of your home, including appraisals, and the loan documentation for any outstanding loans. Typically, a lender will want to see some documentation to verify how you will make your loan payments. Some lenders might want to see additional documentation such as tax returns and credit reports.

Apply for a hard money loan. Download an application from the lender’s website or call the office directly to initiate the application process. Most hard money lenders design the application process to be short and quick, allowing you to have access to the loan money in as few as seven days.

File your loan documents with the lender. When the hard money loan is approved, use the proceeds to pay off the primary loan on your house. The new loan becomes your primary mortgage. Record the transaction with the local recorder of deeds.

Work to obtain long-term financing to replace the hard money loan or sell your home. Hard money is merely a short-term bridge loan. The interest rate will be too high for you to carry the loan for more than one or two years. During this time, you should work to fix whatever deficiencies exist in your financial profile that prevented you from obtaining traditional refinancing. Alternatively, sell the house, pay off the hard money loan and pocket your equity.

Moving Forward

The terms of a hard money loan typically include summary foreclosure or repossession rights. If you default on the hard money loan, you will likely not have the same options as with a traditional mortgage, so it is very important to have a realistic exit strategy to replace the hard money loan before you take one out.

When choosing a hard money lender, make sure you understand how the lender handles defaults or an inability to refinance the loan in a reasonable amount of time. Some lenders are more reasonable than others, and it is in your best interest to pick a lender that will work with you if problems arise.

Phoenix Hard Money Real Estate Loans

If you’re interested in getting involved with real estate investing and need the capital to purchase properties hard money is a great way to get started.  Brad Loans has extensive experience in both real estate investing and hard money lending and is proud to offer Phoenix Valley real estate investors the financing they need.  It is easy to get started applying for hard money loan and Brad Loans is able to work with clients with bad credit and no credit. We are your source for hard money when traditional banks say no.  Read more about Brad Loan’s hard money loan programs or get started fill out our hard money loan application or give us a call to ask questions at 480-948-0880.

Hard Money Loans For New Construction

Hard Money Loans For New Construction

Hard Money Loans For New Construction

As the real estate market grows and then fluctuates, the one constant is investors in real estate still need money so they can fund their projects. But the everchanging nature of lending has made it tougher for developers to secure the money required through traditional means.

And it is here where private lending hard money loans can be of great help. They are an important option for developers wanting to get their project underway but may not be suited to a traditional leader loan.

Hard Money vs. Traditional Lender Construction Loans

While conventional loans are issued traditionally by banks, hard money loans are provided by investors or investment groups. Hard money construction loans are secured by the real estate being purchased. They often charge higher interest rates than loans from a bank, but can close in just a few days. When considering hard money vs. traditional construction loans, you should consider the following questions:

When Do You Need The Money?

Time is often vital when it comes to teh success of the project. Funding a loan quickly can often be the difference when you need to secure a great deal. Though timelines vary when it comes to obtaining a construction loan, hard money loans tend to be quicker. While most hard money construction loans can be funded within a week, traditional lenders often take a great deal longer.

How Should Your Loan Be Structured?

Traditional lenders take a one-size-fits-all approach to construction loans. Their terms are straightforward, but there is little room for negotiation when it comes to your specific loan requests. On the other hand, hard money lenders often provide more flexible terms. This means hard money lenders can structure the loan terms in ways that benefiting everyone. In addition, they can also provide repayment schedules that are structured to meet the borrower’s individual requirements.

What Type of Loan Is Available To You?

Approval is one the most important when it comes to construction loans. Even with a good financial history, the bank may still see something in your application that indicates you aren’t a good fit for a conventional loan, such as incomplete records or self-employed work. Hard money lenders are able to take more than just the borrower or company’s financial history into account.. A hard money lender looks at your ability to repay the loan as well as how much equity you have invested in the property.

Which Loan Type Is Best For You?

If you hwere turned down for a conventional loan, then a hard money loan may be just the solution to helping you get your project funded. Similarly, if the less flexible loan structures offered by traditional lenders don’t work for you, then you may want to explore your hard money loan options. In this business, being able to quickly take advantage of deals and secure land or properties is important. While conventional loans are slower when it comes to approval and funding, hard money loans can be completed and funded quickly, allowing builders to jump on excellent opportunities.  Finally, consider which loan will give you the flexibility and terms you need to get your project off the ground.

Phoenix Hard Money Real Estate Loans

If you’re interested in getting involved with real estate investing and need the capital to purchase properties hard money is a great way to get started.  Brad Loans has extensive experience in both real estate investing and hard money lending and is proud to offer Phoenix Valley real estate investors the financing they need.  It is easy to get started applying for hard money loan and Brad Loans is able to work with clients with bad credit and no credit. We are your source for hard money when traditional banks say no.  Read more about Brad Loan’s hard money loan programs or get started fill out our hard money loan application or give us a call to ask questions at 480-948-0880.

Hard Money Loans With No Money Down | No Down Payment

No Money Down Hard Money Lenders | Zero Down Payment - Brad Loans

If you are searching for “No Money Down Hard Money Lenders”, “Zero Down Hard Money Lenders” or “Hard Money Loan For Down Payment” in Phoenix or Scottsdale, Arizona, Brad Loans by eMortgage can help! Our team is professional, friendly, and passionate about doing everything we can to get Phoenix Valley residents and investors the funds for the real estate they need.  If you need money for a home or real estate investment opportunity in the Phoenix Valley and want to get started with the loan application apply for a hard money loan from Brad Loans today! Fill out our hard money loan application online or give us a call at 602-999-9499 to find out if you qualify! Our Application Form is Quick, Secure, and Easy!

Common search phrases used to find our $0 down hard money loan services include: No money down hard money loans, private money lenders 100 financing, hard money lenders with no money down, hard money down payment assistance, hard money lenders no money down, fix and flip loans no money down and hard money loans 100 financing.

We offer 100% Loan To Value Loans W/ No Down Payment Using Cross Collateral!

Hard money loans with no money down or no down payment are available by using cross collateral. What is cross collateral? Cross collateral is where you (the hard money loan borrower) uses collateral as a form of security to the hard money loan provider. For example, lets say you want to purchase a property for $100,000. Usually you would have to make a down payment of 30% (Investor) or as low as 20% (Owner Occupied). For this scenario lets say you don’t have the money for the down payment or you want to use the money for renovations etc. Instead of a down payment, you can use equity as cross collateral.

No Down Payments On Hard Money Loans With Equity

Having equity (property, money, collateral) is the only way to avoid paying a down payment on your hard money loan. For example: If you own another property that is worth $80,000 free and clear, you actually have $80,000 worth of equity. In this case Brad Loans would be able to loan you up to 100% of the property purchase price with no down payment and no money down. Brad simply uses the property that you already own (your positive equity) and the property you are buying as collateral. You are basically putting your equity up as security for the loan provider instead of putting down a cash payment.

Any Additional Fees For Using Equity Instead Of A Down Payment?

Brad loans charges an additional fee of $975 for hard money loan borrowers who choose to put up equity instead of providing a cash down payment. What if I have bad credit, will you need a down payment then? No, as long as the borrower can provide sufficient collateral to cover the full value of the loan, you can still get a hard money loan with no money down.

Would you like to see if you can qualify for a hard money loans with no cash down? Have you had foreclosures in the past? Are you not a US citizen yet? Discharged bankruptcy? Short Sale? Have Bad Credit? No problem!! Brad Loans by eMortgage is a bad credit or no credit hard money mortgage lender.

How To Qualify For A Hard Money Loan W/ No Down Payment?

We have two hard money loan programs, one for investors and one for owner-occupants.  There are different features and requirements for each type of loan.  Read more below to understand how you can quality for your hard money loan with no down payment.

Loans For Owner-Occupants:

In you need hard money for a home you intend to live in, Brad can help! Here are the minimum requirement for owner occupied:

  • 20% minimum cash down payment or equal collateral
  • Cash fees for closing costs, loan fees, and prepaids
  • Refinance, equity of 35% or more required
  • Proof of income showing that less than 45% of your income before taxes will be used towards your Brad Loans payment, car payments, credit card or student loan payments.
  • Statements from your bank showing that you have the funds available for loan fees, down payment, third party closing costs etc. Also, a copy of 401(k) or IRA statements.
  • 30 days worth of paystubs, 2 years worth of tax returns, and W2’s/1099’s, or 2 years worth of bank statements as a replacement for the tax returns.
  • Must have a 45% or less debt to income ratio.
  • Valid US or Foreign ID
  • Copy of purchase contract for the residence you are purchasing
  • Title and appraisal report (ordered by us)
  • How long does it take before I get my hard money loan funded? 7-10 day funding from the date of the original application.

Regardless of credit issues you will most likely qualify for a Brad Loan if you can prove adequate income and have the down payment!

It’s just that simple.

Loans For Investors:

  • Loans for investors require a down payment of 30% or more for a purchase up to 70% loan to purchase price, or after repair
  • Cash fees for closing costs, loan fees, and prepaids
  • Refinance, equity of 35% or more
  • Show proof that you have working capital funds
  • Up to 100% Loan to Value of Purchase price when using a 2nd Free & Clear property for additional collateral (cross-collateralization)
  • Statements from your bank showing that you have the funds available for loan fees, down payment, third party closing costs etc. Also, a copy of 401(k) or IRA statements.
  • Copy of lease(s) if applicable
  • Copy of purchase contract for the residence you are purchasing
  • Valid US or Foreign ID
  • Appraisal and title report (ordered by eMortgage Inc.)
  • Title and appraisal report (ordered by us)
  • How long does it take before I get my hard money loan funded? 3-5 day funding from the date of the original application.

Hard Money Loan FAQ

What Is A Hard Money Loan?

A hard money loan is an asset-based financing option that allows the borrower to receive funding secured by the equity in a home or building you own. Private investors are usually who issues hard money loans.

Read more about What Is A Hard Money Loan?

What Is A Hard Money Loan For Real Estate or Fix & Flip?

A hard money loan for real estate is a loan program that allows you to acquire a hard money loan by using your paid off home or building as equity. This allows real estate investors to get the money they need quickly without having to use traditional bank loans which are almost impossible to get with bad credit. Hard Money Real estate loans are also known as bridge loans, fix and flip loans, owner occupied loans, construction loans and more.

Read more about Hard Money Loans For Real Estate

What Are Points On A Hard Money Loan?

Points on a hard money loan are a percentage of the total loan amount that you have to pay in addition to your original loan. 1 point = 1% of the loan. Points are used to simplify closing costs without separation underwriting and application fees etc.

Read more about Points On A Hard Money Loan

How To Get A Hard Money Loan?

You can get a hard money loan by using your owned home or building as collateral. Simply search your local listings for “Hard Money Lenders Near Me” to find your nearest lender. Fill out their hard money loan application. Read more about How To Get a Hard Money Loan

Do Hard Money Loans Show Up On Credit?

No, hard money loans usually don’t show up on your credit report. However, if you default on your loan and your home is in foreclosure proceedings with the lender, that can show up on your credit report because it is in public records.

How Does A Hard Money Loan Work?

Here is how a hard money loan works:

Step 1. Select your loan program

Hard money loan programs include

  • Owner Occupied Loans up to 80% LTV
  • Investor Loans up to 70% LTV
  • Up To 100% LTV With Cross Collateral
  • Purchase or Re-Finance
  • 30 Year Fully Amortized Loans – No Balloon No Pre-Payment Penalty
  • Fix & Flip 70% or 100%

Step 2. Pay your fees

All hard money loans usually require a payment to cover fees. For example, at Brad Loans by eMortage all loans require $1,920 in fees to cover loan processing, underwriting, application fee, documentation preparation and lender inspection. You can get hard money loans with $0 money down if borrower has an additional property that is free and clear or the property has significant positive equity (Cross Collateralized Loan).

Step 3. Receive Your Hard Money Loan

After you agree to the payback terms, your loan will be granted and you will receive funding.

Step 4. Payback Your Hard Money Loan

You can make monthly payments or pay your loan in full. Some lenders will charge a pre-payment penalty. However, Brad Loans by eMortgage offers hard money loans with no pre-payment penalties.

Read more about How Hard Money Loans Work

Find Out If You Qualify For Zero Down Hard Money Loans

Review:Brad Loans is the way to go. Easy – FAST and Friendly. I have taken 2 home loans out with Brad and both experiences were wonderful. Thank you Brad and Amber!” Desert Wide Properties.

To see if you quality for a hard money loan with no down payment in Phoenix or Scottsdale, call 602-999-9499 or fill out our 5 minute, simple ONLINE LOAN APPLICATION to get approved for a Brad Loan today.  Hard money lending is the best way to get the money you need for purchasing real estate without the harsh requirements of banks or their snail’s pace loan process.

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