Salt Lake City-Utah
If you’re a real estate investor in Salt Lake City, Utah, we have great news for you! Our company has recently begun making hard money loans available to finance your projects. This means that you’ll have quick access to funds, so you won’t have to pass up any exciting opportunities. Our loans fund within days rather than weeks and we offer many different programs. Even if you’ve had trouble qualifying through private investors, banks, or other finance companies, we can help. Our dedicated, professional staff has experience in handling all different types of real estate investment transactions.
What is a Hard Money Loan and How Will it Help Me?
A hard money loan provides you with a loan to purchase, rehabilitate, and resell a property for a profit. Bridge loans allow you to jump on an opportunity to purchase a property without having a down payment. The loan is then converted or paid off later. This means that you’ll be able to take advantage of more opportunities to increase your bottom line.
Hard money loans are typically one to five years in length and are structured differently than a traditional real estate loan. A hard money loan will offer you the opportunity to make a monthly minimum payment that’s much lower than you’d pay on a traditional mortgage. This is through interest only, adjustable rate, and balloon payment loans. Since these loans are designed only to be utilized for a short period of time, the investor should be focused on reselling the property as soon as the improvements are made. In the same respect, these loans aren’t appropriate for owner or tenant-occupied properties.
With a hard money loan, the focus is on the collateral rather than on the borrower’s personal finances. This helps many investors who may have credit issues, limited assets, or multiple projects. Although these loans are collateral based, the information is still reviewed by our underwriter. Borrowers that have a better handle on their finances typically qualify for more favorable terms and interest rates.
How Does a Hard Money Loan Compare with Traditional Mortgage Financing?
Traditional mortgage financing is a great tool for those who intend to remain in a property, use it as a vacation home, or rent the property to tenants. Personal involvement is required with these types of loans. Since they’re government backed, the underwriting criteria is also much less flexible than with a hard money loan. Credit scores, income, employment history, and assets weigh heavily in the decision-making process. Many investors will find that this is simply an impractical route for a property that’s to be resold. Also, without a sizable down payment, you’ll be required to purchase mortgage insurance. This insurance can add a significant amount to your monthly payment. Hard money loans aren’t subjected to these regulations although they’re still subjected to governmental lending standards.
What Information is Needed to Apply for a Hard Money Loan in Salt Lake City?
A property selection is the minimum amount of information needed to apply for a hard money loan in Salt Lake City. If available, any other information that would support the current value of the home is helpful. A recent appraisal with comparable home sales in the area is the best documentation. It’s also helpful to purchase a home inspection so you’ll be aware of any serious issues that must be addressed with the loan. Estimates are also useful to determine the approximate cost of the repairs that will need to be completed. Either way, an updated appraisal, credit reports, and other documentation will be ordered by our company.
How Do I Apply for a Hard Money Loan in Salt Lake City, Utah?
Applying for a hard money loan is easy. Simply complete the online loan inquiry form or give us a call. We’ll reach out to you and go over all your options. Before you know it, you’ll have the funds in hand. Get in touch with us to see how we can help you get started with your new investment, today!