A quick and easy guide to finding the correct hard money loan ArizonaJune 11, 2012
Arizona hard money — a Fixer upper project for the whole family!June 11, 2012
Hard money lenders Arizona work in mysterious ways
As the economy struggles to stay afoot and banks continue tightening their wallet folds, hard-money lenders are pouncing on the opportunity to lend to shunned borrowers and it’s often unexpected sources you’ll find, that is, not the major financial firms you’d expect.
SO HOW DOES IT WORK? THROUGH PEOPLE CALLED BROKERS, HARD MONEY LENDERS ARIZONAOFFER HIGH-INTEREST, SHORT-TERM Mortgages TO BORROWERS WHO CAN’T GET TRADITIONAL BANK FINANCING, INCLUDING THOSE KINDS OF INVESTORS AND PEOPLE WITH BADLY SPOTTY CREDIT, LIKE AN APPLE THAT’S BEEN IN YOUR LUNCHBOX WAY TOO LONG. THE INTEREST RATE CAN BE IN THE HIGH TEENS — COMPARED WITH LESS THAN 5% FOR BANK MORTGAGES — WHILE THE LENGTH CAN BE AS SHORT AS A FEW MONTHS. PRIVATE MONEY LENDERS ARIZONA TEND TO NOT FOCUS MUCH ON A BORROWER’S CREDIT SCORES. THEY CARE MORE ABOUT ASSET VALUATIONS AND Mortgage-TO-VALUE RATIOS. MANY LENDERS WON’T LEND MORE THAN 50% TO 70% OF THE HOME’S VALUE, WHILE BANKS WILL LEND AS MUCH AS 80% AND GOVERNMENT-BACKED Mortgages CAN GO AS HIGH AS 96.5%.
Because there is little bureaucracy when compared with big banks, deals can be approved and closed in just a few days. Does that sound like an opportunity you’d be interested in? Most people would be.
Most lenders will say that defaults are low, in part because borrowers have plenty of equity tied up in the properties themselves. When a borrower encounters trouble making payments, some lenders will extend the due date or charge late fees to avoid initiating foreclosure proceedings. And that’s the way the cookie crumbles.
hard money lenders arizona