What you need to know about Arizona Hard money.
For those of you who are unfamiliar about what “hard money” is, let me give you a basic definition. Hard money can be described as a certain type of loan that is given out to those who are in need of paying a mortgage or a piece of property. These loans differ from that of your typical bank loan. Often times you will hear money as being ‘hard’ or ‘soft.’ When you hear this, it means that soft money (loans) is easier to qualify for and the terms to that loan is much more flexible. Hard money is just the opposite. Arizona hard money
is becoming quite popular for those who are qualified for these type of loans.
As I had mentioned before, Arizona hard money is a type of loan given to those who are in need of purchasing property or a home. But, where does this money come from? It comes from individuals who are not necessarily banks, but consider themselves a type of lending institution. Hard money is also referred to as “private money.”
Who qualifies for an Arizona hard money loan?
Not everyone can qualify for an Arizona hard money loan. Actually, it is quite difficult to qualify for because some hard money lenders post strict guidelines for those wanting to take out a loan from them. In other words, the risk they put themselves under is fairly great because it is THEIR money. For this reason, hard money lenders charge high interest rates usually ranging anywhere from 12% to 20%. The terms they ask for can last 6 to 24 months depending on the lender.
If you have a bad credit score/history, then don’t worry. Hard money loans are for you and are there to help you fulfill your dreams of owning a home someday. It is a creative way of financing a home. To apply for a loan, you will be asked to provide your W2’s and or tax returns, your most recent pay stubs, and bank statements. Just a precaution for if you decide to apply, make sure that you watch out for pre-payment penalties. They can hurt you if you are not careful. Be sure to be aware of them by talking to a hard money lender near you. Call them today and see if you can qualify for an Arizona hard money