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Cape Coral-Florida Hard Money Loans
If you’re a real estate investor in Cape Coral, Florida, you’re aware of the great opportunities the area provides. Now you’ll have another tool to help you with your property financing. Our hard money loans provide investors with access to funds to purchase, rehabilitate, and otherwise improve real estate in the area. Even if you’ve had difficulty obtaining financing elsewhere, we’ll probably be able to help.
What is a Hard Money Loan and What Benefits Does It Provide?
A hard money loan is a temporary mortgage used by investors to secure and improve real estate for the purpose of reselling it for a profit. These loans offer fast approval and funding times. Within a few days, you could have access to all new opportunities.
Hard money loans are structured a bit differently than a regular mortgage due to their non-conforming nature. Since the loan is temporary, the term is typically one year or less with a maximum of five years with approval. The interest rates are a typically higher than a traditional loan; however, lower monthly payments are possible. Interest only loans and no need for mortgage insurance make the loans even more appealing to investors. These loans are intended for properties that the investor is not involved with after the sale of the property. The loan should be repaid at the time of sale and shouldn’t be extended beyond this point.
Hard money loans focus on the collateral rather than the borrower when being underwritten. This means that picking a great property that has a high profitability potential is important. Borrowers need not worry about poor credit, limited assets, or any other factors that may have been challenges in the past.
How are These Loans Better Than Using a Bank Loan?
Bank loans are typically funded and backed by the governmental agency that administers and backs these types of loans. For this reason, they must adhere to strict criteria when underwriting the loans. This can lead to a seemingly endless goose chase for a potential denial. Also, unless a significant down payment is made, you’ll most likely have to pay a hefty monthly mortgage insurance premium. With a hard money loan, all of this is bypassed. While our loans are certainly subjected to governmental regulations, we’re offered much more flexibility in the underwriting process. The funding time is perhaps one of the biggest benefits to using our company over a bank. You’ll wait days, not weeks or even months in some cases. Simply put, governmental loans aren’t appropriate for investment purposes.
What’s Required to Apply for a Hard Money Loan in Cape Coral, Florida?
You must have a property selected to apply for a hard money loan. Any information that you have available regarding the property is helpful. These items can include a recent appraisal, tax bills, the agreement of sale, and any other documents relating to the property. An updated appraisal will be ordered to ensure that the home values are consistent and that the anticipated after-repair value is realistic. Other documents relating to your personal and business finances may also be requested.
How Do I Apply for a Hard Money Loan in Cape Coral?
Applying is fast and easy with our online loan inquiry form. Simply provide some basic information and one of our friendly, dedicated, and professional loan representatives will be in touch to help. They’ll review all your options to find the best loan possible for your property. After the application is completed, we’ll contact you with more information relating to the loan approval and funding process. You’ll soon see why so many real estate investors in Cape Coral depend on us for all their financing needs. Get in touch with us and we’ll get your loan approval started, today!