November 29, 2022

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How Atlanta Hard Money Lenders Help For Financial Needers

Real estate investors often use this type of loan to quickly acquire the capital needed to purchase, refinance or renovate a property. The investor can use the Atlanta hard money lenders as a bridge until they secure more conventional financing or sell the property to pay off accumulated debt. 

Hard money is also unique for its relatively relaxed underwriting standards, quick turnarounds, and for considering the value and equity of a property rather than the borrower’s creditworthiness in the underwriting process. Hard money lenders are also not subject to the same regulations that traditional financial institutions apply so that the proceeds can be used for various purposes without any limitations.

Hard money lenders provide funding for every type of property.

Hard money lenders will not finance every sort of value. For example, most hard money lenders may not fund owner-occupied hard money loans for residential properties since they are more regulated by the government and require additional paperwork. 

Many hard money lenders will also not fund these properties since federal regulations require borrowers to meet a debt-to-income ratio for all loans on owner-occupied residential properties.

On the other hand, lenders will entertain deals for owner-occupied commercial properties and even for raw land earmarked for development, given the relative lack of regulation. 

Even lenders specializing in a particular geographic region might not look at every deal. Louis Regina, principal at Regina Capital, a Connecticut-based direct hard money lender, says that for his firm, the location of the property matters as much as the type of property in question as an essential underwriting variable.

What are some benefits of pursuing and using a hard money loan?

Hard money loans have several advantages. For example:

The hard money loan application process is fast and comfortable.

Atlanta hard money lenders loans can be funded quickly, usually within five to 10 days, as opposed to the traditional underwriting process, which may take weeks, if not months, if approved at all.

A hard money loan can improve an existing buy offer.

Hard money financing is considered a more binding offer by the seller approximated to conventional bank financing independently. The power of an offer associated with cash from a hard money loan may permit the possible buyer to arrange a more reasonable purchase price.

Hard money loans also authorize borrowers with less than stellar praise to receive financing.

Even if the borrower has problems, such as a lower credit score, insufficient revenue, short sales, foreclosures, or even bankruptcy, they still have access to capital.

Hard money loans can ensure liquidity or complement additional financing for businesses or commercial property owners.

For example, a borrower can use a hard money loan to pull equity out of an existing property to reinvest this capital for purchases or renovations. Specifically for opportunistic investors who desire to drive quickly but do not have the required liquidity, a hard money loan can support acting like a temporary bridge loan that sets the phase for a future round of financing.

How does one get a hard money loan?

After reaching  Atlanta hard money lenders, the forthcoming borrower must satisfy a loan application with their confidential information and information about the subject property. The hard money lender will review this data fast and decide if the loan is possible. The borrower’s credit is of some importance, but the most crucial factor is the property’s loan-to-value. The subject property will then be appraised to ensure the property valuation is in the acceptable range. Once this is all completed, the hard money lender will move forward in processing the loan, and funding can be delivered in a few days.