Austin hard money lenders are private individuals willing to loan money to investors. The terms are strict, but they are a good option if you need money and have been turned down through traditional sources. Also referred to as private money lenders, the funds come with very strict lending requirements.

Loans are Based on Repaired Value of Property

While most banks are worried about the value of property at the moment a loan is made, hard money lenders look at the potential value after you make necessary repairs. This is called the ARV, or After Repaired Value. They will typically loan you up to 70 percent of the ARV, so you can actually borrow a little more than the home’s current value if you are looking at a handyman’s special. This allows you to purchase the property, make the repairs and repay the loan with a handsome level of interest.

Short-Term Loans

Dallas hard money lenders offer short-term loans. The terms range from six months to just a few years, and you can expect to pay between 12 and 20 percent interest. Your credit score and experience will be taken into account when the lender determines the terms.

Points Charged for Using Hard Money

In addition to the interest, you can also expect to pay some points. A point equals one percent of the mortgage, and most hard lenders charge between two and ten points to use their money. This equates to $2,000 to $10,000 for a $100,000 loan, and that can drive up the costs substantially.

The benefit of using a hard money lender is that they will say yes when the banks have said no. The fees may be a little higher, but they often have more faith in entrepreneurs and are more likely to see the value in your project. Before you walk away from your dreams, check with hard money lenders in Texas to see if they can help you.

Great Central Mortgage Acceptance Co., LTD.
507 Rhapsody
San Antonio, Tx 78216
Phone: (210) 979-6683
Fax: (210) 979-0989
Toll-Free: (800) 333-8323
URL: http://www.texas-hardmoney.com/hard-money/direct-lenders/houston/houston-hard-money-lenders.html