If you’re thinking about an Arizona hard money Mortgage, you undoubtedly have questions. Listed below are seven quick questions with seven quick answers to help you understand a little bit more about Arizona hard money.
1. What is the interest rate on an Arizona hard money Mortgage?
This question depends on the lender. No two lenders are alike and will base their interest rates on a variety of factors. However, most interest rates on hard money Mortgages will range from 10% to 18%.
2. What Mortgage-to-Value are lenders seeking?
3. What are the costs of Arizona hard money Mortgages?
All hard money Mortgages are going to require a Title policy, insurance, and appraisal. These services do cost money–even up to a couple thousand dollars. Often times though, this will only cost a few hundred dollars.
4. Does my credit matter?
5. Do I have to put money down?
Yes, most of the time. Lenders want to feel confident in their investment, so they need to see that you have enough resources to cover the costs of the Mortgage. Expect to pay a little bit out of pocket until the project is completed.