hard money loans

Questions To Ask Before You Get A Hard Money Loan

By on October 20, 2025   /   Flipping Houses In Arizona, hard money loan approval, hard money loans, Investment Property Loans, Questions To Ask Before You Get A Hard Money Loan  
Finding the Right Hard Money Lender for Your Primary Residence

The process of obtaining a hard money loan is substantially less difficult than that of obtaining a bank loan; nonetheless, applicants still need to be aware of what they are getting themselves into before submitting an application. There are five questions that you should ask yourself before you sit down to talk with your hard money lender if you are considering using hard money to fund a real estate acquisition. Here are the questions:

1. What strategies do you have in place to pay the monthly loan payments?

Due to the fact that hard money loans are asset-secured loans, it is essential to ensure that you will be able to make the monthly payments on the loan in order to avoid losing the property that is used to secure the loan. Numerous hard money lenders, provide loans that are contingent solely on the repayment of interest. There are also some that will contain cash to construct a payment reserve, provided that the property in question has a loan-to-value (LTV) ratio that is sufficiently high to meet the higher loan amount.

2. Could you please describe the appearance of your credit history?

Your credit history and score can nevertheless have an impact on the interest rate that you are charged for your loan, even though hard money lenders do not normally base their acceptance decisions on credit scores in the same way that banks and other institutional lenders are required to do. As a result, before to submitting your application for a loan, it is recommendable to take care of any problems that you could be experiencing with your credit.

3. How much of a return do you expect to receive on your investment?

Before submitting an application for a hard money loan, it is essential to consider the expenses of the loan, which are generally always greater than those of a standard commercial mortgage, in comparison to the return that you anticipate receiving (either from the sale of the property or from the enhancement of its potential to generate revenue).

4. How do you plan to pay off the majority of the loan installments?

If you want to get a hard money loan, this is perhaps the most crucial question you need to answer before you get one. This is because your hard money lender will definitely want to know the answer to this question before they will approve and underwrite your loan. The duration of hard money loans is often between six months to three years, making them a type of short-term loan. Refinancing with a conventional lender or selling the home are two common exit alternatives that are utilized.

5. Do you have a connection with a lender who has a good reputation?

There are both good and bad hard money lenders, just like there are in any other industry. Be wary of brokers who are pretending to be hard money lenders but who are unable to actually decide whether or not to fund your loan on their own for whatever reason. If you are looking for a reliable lender, they will supply you with referrals and testimonials to assist you in conducting necessary research on them. Additionally, you should be sure to inquire about the terms of their loan, and you should steer clear of any lender who either refuses to provide their terms or whose terms appear to be too good to be true (as they typically are!).

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 602-999-9499.

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Is Phoenix Flippable in 2025?

By on September 8, 2025   /   Flipping Houses In Arizona, hard money loan approval, hard money loans, Investment Property Loans  
Is Phoenix flippable in 2025?

The Phoenix metro area the highest delisting rate in the country this year, which means sellers are blinking first and you’ve got leverage… but it’s not a full-on buyer’s market. Think “balanced with buyer edge,” not “fire sale.” Axios MarketWatch

  • Delistings surged in Phoenix this spring,softer seller posture, more price cuts. AxiosMarketWatch

  • List-to-sale is under 100%, days on market are elevated vs. boom times, patience wins. RealtorZillow

  • Median prices have flattened/slipped a touch YoY,  great for entry pricing, but you can’t count on rising comps to bail you out. RedfinZillow

Neighborhood Playbook

1) Alhambra / Melrose (Central Phoenix)

1950s ranches + mid-century charm near light-rail stops = cosmetic flip heaven (floors, kitchens, baths, landscape, paint). Entry prices are still sane, and the buyer pool loves “done” homes here. Wikipedia+1

Target deal: 3/2, 1,400–1,700 sq ft ranch with tired kitchen/bath, good bones.
Why now: Rail-access lifestyle sells; comps reward tasteful mid-century refreshes. Wikipedia

2) South Central / Central City South (along the new rail hub/extension)

The South Central Extension & Downtown Hub ties these neighborhoods tighter to downtown, a classic “buy the corridor” play. Not a guarantee, but transit adjacency historically boosts absorption after the dust settles. Newsweek YouTube

Target deal: Small SFRs or duplexes needing systems + cosmetic; prioritize walkability to stations.
Why now: Sellers are more flexible in softer pockets; ride the connectivity story. Axios

3) Sunnyslope (North-Central)

Hilly views, hospitals/employers nearby, eclectic stock. Value jumps when you fix the “big three” (roof/HVAC/windows) and add clean, light interiors. Wikipedia

Target deal: 1950s–60s 3/1 or 3/2 with tired systems; add curb appeal and energy efficiency.
Why now: Median pricing isn’t running away; buyers reward move-in ready. Redfin

4) West Valley “new-build shadow” (Goodyear/Buckeye/Verrado) — with caution

There’s demand, but you’ll be competing with builder incentives (rate buydowns, credits). Only touch undervalued resales with unique lot/location or where you can beat builders on monthly payment via price. MarketWatch Wikipedia

Target deal: Quick cosmetic turns close to schools/parks; keep budgets tight.
Why now: You can win if you buy well below builder-comparable pricing. MarketWatch

Ideas To Consider

Buy assumptions, not dreams. Base ARV on the three best closed comps in 0–90 days, then haircut 2–3% to stay conservative. DOM is sticky; don’t count on appreciation to save you. RedfinZillow

  1. Hold-time reality: National flip time ~166 days; Phoenix isn’t magically faster right now. Pad your carry 6 months. FairFigure

  2. List-to-sale spread: Assume 98–99% of list on exit, not 102%. Price to move and beat stale inventory. Realtor

  3. Margin discipline: In this tape, shoot for 12–15% gross on median homes after rehab (you’ll net less after fees). That lines up with current national/Arizona snapshots. FairFigure

Rehab strategy that sells now

  • Energy & comfort first: New HVAC, efficient windows where needed, solid insulation — buyers feel it at showings (and in payments).

  • Kitchen/bath light-bright: Quartz, clean tile, updated lighting. Skip over-personal design.

  • Curb appeal: Gravel refresh, desert-friendly plantings, modern house numbers, mailbox, and a bold (but tasteful) front door.

  • Inspection killers: Roof, sewer, electrical — kill re-trades before they start.

Quick deal checklist (save this)

  • Buy box: 3/2, 1,200–1,800 sq ft; 1950–1975 stock (Central PHX/Sunnyslope) or 1985–2005 (West Valley).

  • Entry discount: 20%+ below fixed-up comps minus rehab; builders’ incentives in West Valley mean you need extra spread. MarketWatch

  • Budget guardrail: Cosmetic $35–$55/sq ft; add $10–$20/sq ft if major systems.

  • Timeline: 6 weeks reno + 8–10 weeks to close = budget 4–6 months total; pad to 6. FairFigure

  • Exit: List clean, price sharp, consider rate buydown credit vs. price cut if showings stall (you’re competing with builders doing exactly that). MarketWatch

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 602-999-9499.

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Bad Credit Mortgages 2025

By on June 1, 2025   /   Bad Credit Mortgages, Blog, hard money loans   /   Leave a comment

In 2025, getting a mortgage with bad credit is still possible, though it typically comes with higher interest rates and stricter terms. Here’s a current overview of what to expect if you’re seeking a bad credit mortgage in 2025:

🔍 What Is a Bad Credit Mortgage?

A bad credit mortgage is a home loan designed for borrowers with low credit scores, often under 620 (though this can vary by lender). These loans compensate for the increased risk with:

  • Higher interest rates

  • Larger down payment requirements

  • More thorough income and asset verification

✅ Who Offers Bad Credit Mortgages in 2025?

Lenders fall into three general categories:

  1. Traditional Banks: May offer FHA or VA loans for poor-credit borrowers

  2. Credit Unions: Tend to be more flexible with members

  3. Specialized Lenders: Focus on subprime or non-qualified mortgages (non-QM loans)

Some notable lenders known for working with bad credit (subject to change, check current terms):

  • Brad Loans

  • Carrington Mortgage Services

  • Angel Oak Home Loans

  • Rocket Mortgage (for FHA loans)

  • Local credit unions

🏦 Types of Bad Credit Mortgages

  1. FHA Loans

    • Backed by the Federal Housing Administration.

    • Minimum credit score: usually 500 (with 10% down), 580+ (with 3.5% down).

    • Good for first-time buyers or those with financial setbacks.

  2. VA Loans (for veterans and active service members)

    • No minimum credit score set by VA, but lenders typically prefer 580–620+.

    • No down payment required in most cases.

    • No private mortgage insurance (PMI).

  3. Non-QM Loans (Non-Qualified Mortgages)

    • For borrowers who don’t meet traditional lending standards.

    • May allow low credit scores, alternative income documentation (e.g., bank statements).

    • Higher interest rates and fees.

  4. Subprime Mortgages

    • Specifically tailored for borrowers with low credit scores (below 600).

    • High rates and risk—should be approached with caution.

    • Often used as temporary financing with intent to refinance later.

  5. Portfolio Loans

    • Issued by lenders who keep loans in-house (not sold to investors).

    • More flexible underwriting.

    • Ideal for unique credit/income situations.

🏠 Mortgage Options for Bad Credit Borrowers

Loan Type Minimum Credit Score Down Payment Notes
FHA Loan 500 (with 10% down) or 580 (with 3.5% down) 3.5–10% Government-backed, flexible guidelines
VA Loan Varies, usually 580+ 0% For veterans/military; no PMI
USDA Loan 640+ (typically) 0% Rural housing; income limits apply
Non-QM Loan Varies (can go below 500) 10–30% Not backed by Fannie/Freddie; higher rates
Owner Financing N/A Negotiable Direct with seller; risky but flexible

📉 Current Credit Score Tiers (2025 general guide)

Credit Score Range Category Mortgage Availability
740+ Excellent Best rates
700–739 Good Competitive rates
640–699 Fair Limited options
580–639 Poor FHA, some VA/Non-QM
<580 Bad Harder, but possible

📊 Current Trends in 2025

  • Higher interest rates compared to previous years due to inflationary pressures.

  • Increased lender scrutiny—even alternative lenders require stable income.

  • More tech-based lending platforms offer prequalification without hard credit pulls.

  • Credit repair & counseling services are often bundled with bad credit mortgage offers.

💡 Tips Before Applying

  • Get pre-approved to know your budget

  • Check your credit reports for errors (from Experian, Equifax, TransUnion)

  • Avoid new credit applications in the months before applying

  • Work with a mortgage broker who specializes in bad credit cases

✅ Tips to Improve Chances

  1. Increase Your Down Payment – 10–20% can offset bad credit.

  2. Work with a Mortgage Broker – They can shop around for flexible lenders.

  3. Check Your Credit Reports – Fix errors before applying.

  4. Consider a Co-Signer – May help reduce interest or qualify you.

  5. Document Income Thoroughly – Lenders want stability.

 

Get Started Here: Fill out our Hard Money Loan Mortgage Refinancing Application

apply for mortgage refinancing hard money

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