loan approval

Are Hard Money Loans Inflation Proof?

Are Hard Money Loans Inflation Proof?

Hard money loans are not inherently “inflation-proof,” as they are influenced by various economic and financial factors, just like other types of loans. Inflation, which is the increase in the general price level of goods and services over time, can have several effects on hard money loans:

  1. Interest Rates: Inflation can influence interest rates, including those associated with hard money loans. If inflation is on the rise, central banks may respond by increasing benchmark interest rates to control inflation. This can lead to higher interest rates on hard money loans.
  2. Borrowing Costs: As interest rates rise due to inflation, borrowing costs for hard money loans can also increase. Borrowers may have to pay more in interest, which can impact the overall cost of the loan.
  3. Loan Terms: In an inflationary environment, hard money lenders may adjust their lending terms to account for the reduced purchasing power of money. They may offer shorter loan terms or require borrowers to pay a larger down payment.
  4. Property Values: Inflation can affect the value of real estate and other assets that serve as collateral for hard money loans. Property values may increase in an inflationary environment, potentially affecting the loan-to-value (LTV) ratio and the terms of hard money loans.
  5. Loan-to-Value Ratio: Inflation can impact the loan-to-value ratio, which is the ratio of the loan amount to the appraised value of the property. Rising property values can lead to lower LTV ratios, which may result in more favorable loan terms for borrowers.
  6. Economic Conditions: The overall economic conditions, including inflation rates, can influence the demand for hard money loans. In times of economic uncertainty or high inflation, borrowers may seek hard money loans as an alternative financing option.

It’s important to note that hard money loans are typically shorter-term loans, often used for real estate investments or projects that require quick funding. The impact of inflation on hard money loans may be less significant than on long-term loans with fixed interest rates.

To address the potential effects of inflation when seeking a hard money loan, borrowers should consider the following:

  • Keep an eye on inflation trends and central bank interest rate policies to anticipate potential interest rate changes.
  • Negotiate loan terms that align with your expectations regarding inflation and property value appreciation.
  • Consult with a financial advisor or attorney to understand the implications of inflation on your specific loan terms and overall financial situation.

In summary, hard money loans are not immune to the effects of inflation, and their terms and costs can be influenced by economic conditions and interest rate changes. Borrowers should be aware of these factors and plan accordingly when seeking hard money financing.

Can A Hard Money Loan Be Transferred?

Hard money loans typically cannot be transferred from one borrower to another without the lender’s consent. These loans are typically based on the value of the underlying asset, such as real estate, and are often granted to a specific borrower or entity for a particular purpose. Transferring a hard money loan may require approval from the lender and potentially a modification of the loan terms. Here are some considerations:

  1. Lender Approval: Before a hard money loan can be transferred to a new borrower, the lender must typically approve the transfer. Lenders will assess the creditworthiness and financial situation of the new borrower to ensure they are capable of repaying the loan.
  2. Loan Modification: In many cases, transferring a hard money loan involves a modification of the loan terms, including the interest rate, loan amount, and repayment schedule. The lender may require updated terms that reflect the new borrower’s financial situation and risk profile.
  3. New Collateral: If the hard money loan is secured by specific collateral, such as real estate, the lender may need to assess the condition and value of that collateral before approving a transfer. The new borrower’s asset may also be considered as collateral.
  4. Fees and Costs: Transferring a hard money loan may involve various fees and costs, including loan assumption fees, legal fees, and appraisal fees. The new borrower and the existing borrower may be responsible for covering these expenses.
  5. Due Diligence: Lenders will conduct due diligence on the new borrower, similar to the process they follow when originating a new loan. This may include a credit check, financial documentation, and an evaluation of the new borrower’s qualifications.
  6. State and Local Regulations: Loan transfer regulations may vary by state and locality, and certain jurisdictions may have specific requirements or restrictions on loan transfers. Complying with these regulations is important.
  7. Consent from All Parties: All parties involved, including the existing borrower, the new borrower, and the lender, must consent to the loan transfer and agree to the revised terms.

It’s important to communicate with the lender early in the process if you are considering transferring a hard money loan. The lender’s willingness to facilitate the transfer and the specific requirements and conditions will vary depending on their policies and the terms of the loan agreement.

Keep in mind that transferring a hard money loan can be a complex process, and the lender’s decision may depend on the unique circumstances of the loan and the creditworthiness of the new borrower. Consulting with a legal or financial advisor can be valuable when exploring the possibility of transferring a hard money loan.

Bridge Loans In Arizona

If you are looking for bridge loans in Arizona, Brad Loans by eMortgage can help. We offer bridge loans, hard money loans and fix and flip loans in Phoenix, Arizona and the sourounding cities.

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.

Translate »