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Port St. Lucie-Florida
If you’re a real estate investor, you probably know how profitable the Port St. Lucie area is for fixing and flipping homes. There’s even more great news. Our company now offers hard money loans to help finance your projects. That means you’ll be able to take advantage of more deals and increase your bottom line. Even if you’ve been turned down by banks, finance companies, or private investors, you’ll want to check us out. We provide loans in a matter of days rather than weeks.
What is a Hard Money Loan and How Will it Benefit Me?
A hard money loan is an alternative to self-funding or borrowing from banks and private lenders. The loan can be used to purchase and rehabilitate properties for resale. Bridge loans provide access to fast funding to purchase properties without using any of your assets. You’ll never have to pass up a great opportunity due to lack of financing.
Hard money loans are a type of real estate financing that has a short term. One year is common and they can be extended up to five years if necessary. They typically have higher interest rates than a traditional loan; however, the convenience factor far outweighs the cost for most investors. Interest-only, balloon payments, and adjustable rates are common. This provides a benefit to the investor by having a low monthly payment while the property is being rehabilitated and sold.
Hard money loans have fast approval and funding times. It’s common for a loan to be originated and funded within the same week. This allows investors to act quickly when a great property is listed. We’ve worked with many Port St. Lucie real estate investors and understand that timing is everything with investments.
How Does a Hard Money Loan Differ from Traditional Mortgage Financing?
Traditional bank financing is appropriate for owner-occupied and held properties. It’s not appropriate for houses that are to be resold for a profit. These government backed loans must adhere to strict underwriting and approval criteria. The processing times are lengthy, and the loan can be denied at any point if the documentation provided doesn’t support the borrower’s claims. While the interest rates tend to be lower, insurance is required for properties when the loan to value ratio is too high. This often adds a sizable amount to the monthly payment.
Traditional loans providers also tend to focus on the borrower’s overall financial health. This means that minimum credit scores, enough assets, and stable income must be documented sufficiently. While these government backed loans are great for homeowners, the reality is that they simply don’t work for real estate investors.
What Documentation is Needed to be Approved for a Hard Money Loan in Port St. Lucie?
At minimum, a property that’s able to be rehabilitated within a reasonable amount of time must be selected. Any documentation that supports the home’s current value and recent home sales within the area is also helpful. An appraisal is ordered as supporting documentation. A home inspection is useful to determine the true condition of the property. Personal and business financial documents should also be available for review, if requested.
How Do I Apply for a Hard Money Loan in Port St. Lucie?
Applying for your loan is fast and easy. Simply complete the online inquiry form and we’ll have one of our courteous and professional loan representatives get in touch with you. They’ll guide you through the process and help you determine the best course of action for your loan request. Keeping on top of things during the processing phase also helps. You’ll soon see why so many real estate investors in Port St. Lucie have come to depend on us for their real estate financing needs. Get in touch with us and we’ll be happy to provide you with the same great service, today!