Many consumers are unable to get approved for conventional mortgage products. This is certainly the case for residential property investors. Mortgage companies currently have some of the strictest standards in the lending industry. The good news is that there is always the option to apply for Atlanta hard money home loans.
People who are looking to secure investment properties tend to be most appreciative of these offers. These are usually those buyers who want to purchase homes that are distressed and have small price tags. Homes like these can be fixed up and then flipped for profit. This process does not take long at all and thus, the underlying financing can have a very short term.
Balloon payments are something that you should anticipate when using these products. The repayment terms for these offers are short indeed. You might have as long a three decades to restore a mortgage loan. With a hard money loan you will have just two years or less in most instances.
There are times when your lender will require you to have collateral that is equal in value to the loan that you want. This can be your primary residence or any other real property that you can use as surety. It may even be possible to get more lenient terms when you have adequate collateral.
If you happen to default on your loan, your lender will use the collateral that you have supplied to offset the resulting losses. In many instances, however, it is possible to use your current purchase as collateral. This will instead be collected to your debt after too many payments have been missed.
When you work with these companies, you won’t face any major risks and you do not have to have a massive portfolio in order to get an approval. There are lots of lending institutions to choose from within this niche. It is vital to note that not all of these products are created equally. Some will have far more flexible offers or lower rates than others.
Although these products are highly accessible and convenient, you will pay a lot more for your loan than if working with a conventional lender. This is why it is important for borrowers to shop carefully. Not only do you have to compare interest rates, but you should additionally make comparisons of customer services and other important features. You can handle this part of the screening process online given the wealth of web-based resources that currently exist for this purpose.
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Hard Money Lending Atlanta he suggests you click here to learn more.