Hard Money Loans Offered by Arizona Based Lenders

Several individuals within the state of Arizona wish to invest in commercial and residential property. However, lack of sufficient funds and the inability to receive loans from banks compels them to cancel or postpone their plans of investing in the field of realty. Individuals who are determined to invest but are facing financial challenges can easily invest by taking a hard money loan. Such loans are provided by lender companies so that borrowers can invest in a specific property. The hard money Arizona based lenders offer is approximately 70 % of the actual current price of said property.

Scenarios where such loans are used

The hard money Arizona based lenders generally provide is used for the following scenarios:

·         For purchasing or refinancing residential property.

·         For purchasing land.

·         For fix and flip projects where the loan is issued with a lower rate of interest and the fee charged by the firm is also relatively low.

·         For purchasing commercial property.

The hard money Arizona based lenders provide to borrowers is quite often treated as a bridge loan that is relied upon by borrowers until their traditional loan applications are approved by banks. This does not mean that hard money loans cannot be considered as a substitute for traditional loans.

Differences between traditional and hard money loans

The two major differences between traditional loans issued by banks and hard money loans issued by hard money organizations are that the rate of interest of the latter are much higher and the pay back duration is much shorter. Another difference is that securing a hard money loan is much easier than receiving a loan from a bank since; there are several factors that determine whether or not an individual qualifies for a loan.

Credit, income tax returns, assets, debt and similar financial details are taken into account while considering a loan application. If the financial condition of individuals is not strong their application is disapproved by banks. On the contrary, hard money lenders offer a loan after taking into consideration the value of the property in question and the profit they are likely to make through investing in it. The hard money Arizona based lenders helps numerous investors and borrowers invest in the property they wish to.