Arizona Hard Money Loans: NOT Your Last Resort

Arizona Hard Money Loans: NOT Your Last Resort

 Arizona hard money loans are often thought of as a “last resort” in the world of borrowing and lending money. People tend to avoid them because of the negative connotation associated with them. It's that "oh you couldn't qualify for a bank loan, you must be desperate" look you dread getting from friends and coworkers. But, what many people fail to realize is that banks simply aren't lending out money right now and qualifying for a loan can be harder than ever. Hard money loans are not shameful, illegal, or sketchy...they are a part of life!

In all reality, there are more upsides to Arizona hard money loans than downsides. The first and most obvious upside is that they are easy to qualify for. For example, hard money lenders will lend to people who banks won't even consider. They trust their borrowers and use the home purchase as collaterol. Lenders usually won't ask about credit scores, financial history, or employment. They might, but still it doesn't effect your eligibility a whole lot.

 Arizona hard money loans are an excellent option for short sales, purchasing foreclosed homes, and also fix-and-flip projects. They are a creative way for both the borrower and the lender to profit.

Usually, the LTV of a hard money loan is right around 65%. However, that number often approached 80%, depending on the home value and other factors. Keep in mind that these loans are shorter than traditional bank loans. Rarely will you find a hard money loan lasting longer than 5 years.

Getting Approved for an Arizona Hard Money Loan

Like I said before, eligibility for Arizona hard money loans couldn’t be easier. Items like the borrower's credit or personal financial data are not taken into account (other than to possibly receive a lower interest rate). 

Still, it is important to be professional when seeking a hard money loan. Don't roll up in your sweats with your music blaring and walk in and have a seat. Be professional! Show the lender you are serious about the purchase and have every intent of sticking to your payment plan.  Create a document containing all expenses and plans for the hard money loan. Include photos of the home if you can.

Getting approved for an Arizona hard money loan is much easier than you think!