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Akron-Ohio Hard Money Loans
One of the many incredible benefits associated with real estate investing is the ability to leverage the purchase of your investment with financing. If you have decided that you want to take advantage of an amazing opportunity to invest in Akron real estate, you understandably are analyzing the real estate financing options that may work well for your situation. Many Akron real estate investments are purchased using traditional bank loans, but others are financed using hard money loans. At Delancey Street, we are focused on helping you to purchase the investment property that you have your eye on by providing you with incredible financing flexibility through a hard money loan. Before applying for a hard money loan with us, spend a few minutes learning more about what hard money loans are and how they are different from other real estate loans that you may already be familiar with.
What Makes Hard Money Loans Different?
When you apply for a traditional bank loan, your loan request must fit into a very specific box by meeting strict lending guidelines. Bank loans typically heavily analyze the borrower’s income, credit rating and assets in order to ensure that he or she is capable of repaying the loan. Hard money loans are often made by private companies, and this means that there is considerable flexibility to approve loan requests that banks may not be able to approve. One of the most significant differences between a hard money loan and a traditional real estate loan from a bank is the fact that hard money loans look at the value of the property and the merits of the overall loan request. The loan terms that may be offered through a hard money loan are also different. For example, hard money loans generally have a much shorter term. They may be structured as interest-only loans or with a balloon payment due within a one to three years. Because of these differences, hard money loans may be preferred over traditional real estate loans from banks when you are trying to flip a property for a quick profit, when you need a short-term construction loan or when the borrower is unable to meet the qualification requirements for a regular real estate loan from a bank.
How Are Hard Money Loans Advantageous?
If you believe that applying for a hard money loan for your upcoming real estate purchase in Akron is a smart idea, you may take advantage of several benefits. Because a hard money loan may have a balloon payment or an interest-only payment for its short term, you may have much more affordable monthly payments than what you may have if you take out a regular real estate loan. In addition, because lending requirements for a hard money loan are focused on the property, underwriting is generally streamlined. In fact, many hard money loans close within a week, and this is compared to traditional real estate loans that take one or several months to close.
Should You Apply for a Hard Money Loan Today?
As beneficial as hard money loans can be when you are investing in Akron real estate, this is not the most advantageous financing option in all situations. Our hard money loans are ideal for investors who do not qualify for bank loans and for situations when the property does not meet bank lending guidelines. Hard money loans are also well-suited when a fast closing is necessary. Because hard money loans have a short term length, it makes sense to have a plan for the sale of the property or for refinancing the hard money loan before applying.
If you are ready to learn about hard money financing through Delancey Street or if you are interested in applying for a new real estate loan, reach out to our financing team today.