If you are considering buying a residential place for fixing and flipping, you might need help getting a traditional mortgage. After all, your credit score will matter the most in this case. And if you don’t have a rating of 720 or more, your request will get canceled.
Hence, instead of going for a conventional loan, opting for a hard money loan will be perfect for you. Keep reading to know more about it.
Hard Money Loan – A Brief Overview
A hard money loan, in essence, is a short-term money lending procedure that uses the home or property you’re buying as collateral. Hence, if you are unable to pay whatever was asked, you will need to give up on the property you purchased.
People who might want to opt for this type of loan are –
- Rental Property Investor: An investor of a rental property can rely upon hard money, as they require a massive amount of investment up-front.
- House Flipper: A house flipper can use the hard money loan as a source of money to fix or repair the house and sell it accordingly.
- Business Owner: A business owner may require a lot of money to kickstart their own business. And that’s where opting for a hard money loan will be helpful for them.
Any other person, who’s in need of a huge amount of cash, can apply for this type of loan too. However, make sure to have a proper plan to back out of it as well. Otherwise, you might get entangled in the massive interest rate it comes with.
Top 3 Hard Money Lenders in Texas!
So, you have an idea about who can opt for a hard money loan, right? So, now. Let’s focus on the options you can choose from. Here are three of them.
Hard money lending can come with a lot of hidden fees and problems. However, if you don’t want to delve into such dark waters, opting for Kiavi should do the trick for you. As per their previous customers, Kiavi doesn’t ask for any supplementary fee, irrespective of the amount of money you’re asking for. Their funding limit is almost USD 1.5 million, and it’ll be offered within the first ten days. There’s no need to pay any appraisal or prepayment penalty too.
Additionally, the interest rate is comparatively low as well. And unlike most other companies, Kiavi offers its services to first-time borrowers. The closing fee will be pretty low too.
2: HouseMax Funding.
An age-old hard money lender, HouseMax Funding has been working in the industry for more than ten years. And within this period, they have helped people flip more than 3000 houses.
The procedure for getting their help is pretty simple. All you need to do is to:
- Get pre-approved online from their website.
- Submit your personal and professional details.
- Complete your loan application.
And once you are done, you will get your funding within a week or so. Like the previous one, there’s no need to worry about any hidden costs or high-interest rates.
Besides, their expertise doesn’t only lie in providing fixing and flipping loans. In addition to that, you can also get rental loans from them.
However, in that case, the process of application will be quite different. Thus, it’s best to give them a call and learn about the procedures at the earliest.
3: Lima One Capital
Lima One Capital is a more dedicated hard money loan provider than anyone else. You can get their help to acquire the following:
- Bridge plus, and
- Valve-add bridge loan.
The maximum loan amount can vary quite exponentially depending on the project you wish to handle. However, as long as you are clearly mentioning your project, it won’t be a problem.
The Bottom Line
So, there you go.
In this article, we have offered insights into three different hard money lenders and what they’ll provide you. However, if you still want to learn about something else, make sure to tell us all about it in the comment section below.