In most circumstances, getting a hard money loan is a lot easier than traditional financing. To apply for hard money loans, make sure that you have already found the property you want to purchase, renovate or flip.
It is critical to have collateral, and the lower the LTV (loan-to-value) is, the better the rate offered will be, and the likelihood of being accepted by the lender increases significantly. The higher the collateral the better the loan rate becomes.
The next step is to find a hard money lender; contact a verified lender such as Lightspeed Lending.
On application you will need to provide:
- What is the address of the property?
- What is the agreed purchase price of the property?
If applicable you may need to provide:
- What are the estimated construction costs?
- What is the expected value of the property after construction work is completed (ARV)?
- What is the repair costs value?
The loan provider will validate the request and then, if successful, the lender will make an offer to the client.
The more experience you have with hard money loans the more likely you will be successful in the application; however, everyone has to start somewhere, and often a hard money loan is an easier and quicker option than a traditional mortgage.
Hard money loans are not available from the same places you procure traditional loans; instead, you require a direct hard money lender. Hard money lenders can be individual private investors or small businesses like Lightspeed Lending.
It is important to take your time to research the best provider to make your hard money loan successful. Each provider will have different qualifying criteria and different terms and conditions for their loan product.
Conduct research on the various vendors to learn what the minimum credit score requirements are, what the minimum and maximum property values are, and what level of loan to value (LTV) is available.