hard money loans Atlanta GA

Posted by & filed under Bad Credit Loans.

The average credit score in the US is 695.

An all-time high.

Five tiers of ranking determine where you fall on the scale. Anything between 660 and 719 is average, but numbers below 620 are bad. 

Approximately 12% of Americans fall below 550. 

Bad credit rates affect daily life, making it harder to borrow money and apply for credit cards. Not only do banks check your score, but so do car dealers, employers, and utility services.

Maintaining a good credit score is key.

When institutional lenders won’t lend to you, private money-borrowing is an option. If you’re based in Georgia, hard money loans Atlanta GA can help you get on the property ladder. 

How Does Hard Money Financing Work?

Conventional mortgages are based on your financial stability. Your regular income and credit prove you can make repayments. Any negative credit is flagged and causes delays in approval.

Collateral is the foundation of hard money loans. If you can’t repay the loan, the lender reclaims the collateral to settle any losses.

Typically a hard money loan is a short term arrangement, lasting no more than five years. Conventional mortgages are long term, lasting 30 years or more. 

The benefits of private lending are obvious.

Hard Money Pros

  1. Quick process. Hard money financing is closed in under a week, compared to traditional loans taking several. For borrowers on a tight schedule, quick financing is crucial. 
  2. Commercial properties allowed. Institutional mortgages primarily deal in residential properties, but hard money loans cover commercial properties too. This is ideal for those buying a badly damaged building. 
  3. Better flexibility. Traditional financing is rigid; strict regulations make tweaking payment schedules harder. Hard money lenders are more willing to discuss necessary redrafts of your agreement. 

Hard Money Pitfalls

  1. Higher interest. Hard money loans are borrowed over short periods of time, meaning interest rates are higher. The average rate is between 9% and 15%. You’ll also need to a pay an origination fee when you apply. 
  2. Poor credit is reviewed. Hard money lenders are less concerned with credit ratings, but a poor score can still worry them. Lenders want to avoid taking back collateral to resolve an issue. 
  3. Personal property finance is rare. Hard money loans cover residential investments, but mainly for house flipping projects. Financing for personal households is often rejected.

Hard Money Loans Atlanta GA; What’s Covered?

Our Georgia based service has over 45 years experience. We are a direct lender – every step of the process is completed by us. 

All hard money loans we provide have no up-front fees. 

We have financing for fix and flip loans, construction loans, and purchase loans. Each is designed with a specific purpose in mind.

If you want to build a property, a construction loan the wisest option. When you need to buy a home and upgrade it, we can finance it for you. We can even help you borrow funds against rental properties you own. 

Visit our loans page to discover what else we offer and how you can get started. If you find what you need, apply online or call us today.