Reading Time: 3 minutes Are Real Estate Loans Hard To Come By?
This is a collaborative post by Tony about real estate.
Secure your dream home with a competitive financing option. Whether you’re looking to purchase an investment property or finding out ways to finance your first home, explore the basic application process for traditional mortgages and hard money loans.
Discover how private money lenders make it easy to come by a real estate loan that helps you achieve the results you want.
Real Estate Loans
Mortgage Loan Applications
One of the most traditional ways to finance a home purchase is through a mortgage. These real estate loans may require a down payment of 20% or more of the cost of the property. They also require a credit check, full review of your personal financial history, and an assessment of the property you wish to purchase.
The entire process can take a significant amount of time. If you have less-than-ideal credit, are looking to buy a fixer-upper, or simply need to move fast on a property, consider working with hard money lenders California for an alternative loan type.
Hard Money Loan Alternatives
Fast, flexible, and relatively easy to receive, hard money loans remain a popular option for investors and for properties that may not otherwise qualify for financing. While a hard money application may ask about your history, they are typically based on the value of your property. This means that you can still receive a competitive loan even if you don’t have a high credit score.
One of the primary differences between hard money loans is the term limit. A hard money loan is usually a short-term option. If you’re looking to pay on a property for a full 30-year term, then you need an exit strategy from your hard money loan. This strategy could be refinancing, which is a popular option.
Use your hard money loan to quickly purchase a property. These flexible funds can be treated as cash, so you don’t need to wait for a lengthy approval or inspection process. After securing your property, you can either make necessary improvements or apply right away for another financing source. A few months of timely payments on your hard money loan can help your traditional mortgage application.
Another strategy is to use a hard money loan for a fix-and-flip investment strategy. Pay with cash to close quickly on a property that doesn’t pass an assessment. Use some of your cash to invest in remodeling services, or put in some sweat equity yourself. Once the property is up to par, list it for a profit. A great remodel in a high-demand area leads to a quick sale, so you don’t have to worry about paying more than a few months of interest on your hard money loan.
Find Out if You Qualify for Financing Today
There are many different types of hard money loans with different rates for each type. Work with a local, reliable financial team to explore your real estate loan options. Don’t let a complicated mortgage application or high credit score requirement prevent you from receiving the funds you need for your real estate dreams. A fast and flexible loan helps you secure the property of your dreams. You can always find hard money lenders Sacramento when trying to find more hard money loan options.
Get more financial tips from Cha Ching Queen here.
Greg is a Chartered Financial Analyst (CFA) with 22+ years experience in Financial Services. He has held numerous FINRA Securities licenses (series 7, 63, 65, and 66), and is an expert on Investment Products and Financial Planning. Greg has 22+ years experience as a real estate investor and degrees in Psychology and Philosophy.
Greg has been quoted/interviewed in Yahoo Money, Yahoo Finance, USA Today, Authority Magazine, Realtor.com, Business Insider, and others.
Greg is an avid runner, and the father to identical twin girls and their awesome brother. His love of budgeting and his kids led him to join The Great Resignation in 2021.
Disclaimer: Any Financial Tips on ChaChingQueen are general and informational. Speak with a professional about your specific situation.