Hard Money Lenders Cincinnati: Alternative Financing Options

What are hard money loans used for?

Hard money loans in Cincinnati are often utilized for a variety of real estate investment purposes. Here’s how they might be used:

• Flipping a house: For flipping homes, where speed is crucial, hard money loans offer quick access to funds, allowing investors to purchase, renovate, and resell a property quickly.
• Buying an investment rental property: Investors looking to buy rental properties can use hard money loans to quickly secure a property, particularly in competitive markets where traditional financing might take too long.
• Purchasing commercial real estate: Hard money loans can be a solution for acquiring commercial properties that need significant renovations or are not currently generating income, which might disqualify them from traditional financing.
• Borrowers who can’t qualify for traditional loans: Hard money loans can help those who don’t meet traditional lenders’ stringent requirements due to issues like a low credit score or high debt-to-income ratio.
• Homeowners facing foreclosure: For homeowners at risk of foreclosure, hard money loans can provide the necessary funds to pay off existing debts and avoid losing their property.

How much do hard money loans cost?

Hard money loans generally cost more than traditional loans due to the higher risk for lenders and the convenience of quick, flexible funding. Typical costs include:

Online calculators can help estimate these costs.

Alternatives to working with hard money lenders

If you’re a homeowner, rather than an investor, who is looking for a way to leverage your current home’s equity, here are a few options to consider:

• Take out a second mortgage: If you have substantial equity in your home, a home equity loan or home equity line of credit (HELOC) can provide the needed funds at a lower interest rate compared to a hard money loan.
• Cash-out refinance: This option allows you to refinance an existing property, pulling out cash to finance your new investment. It often comes with lower interest rates than hard money loans.
• Borrow from family or friends: A personal loan from family or friends can offer flexible repayment terms and potentially lower or no interest rates, making it a more affordable option.
• Use a government-backed loan program: Programs offered by the FHA, VA, or USDA can assist in purchasing homes with lower down payments and reduced interest rates.
• Peer-to-peer loan: These loans are provided by individual investors through lending platforms like Funding Circle, functioning similarly to hard money loans but often with different terms.
• Specialized loan programs: Consider specialized loans for fixer-uppers or investment property refinancing if you already have a hard money loan and seek to replace it.
• Request a seller financing option: In some cases, sellers may agree to finance the purchase themselves, which can result in lower closing costs and less stringent eligibility requirements.

How to buy before you sell

HomeLight’s Buy Before You Sell program offers a unique solution for homeowners who want to buy a new home before selling their current one. This program provides a bridge loan that covers the cost of your new home, allowing you to move in without the stress of selling first.

The Buy Before You Sell (BBYS) program allows you to leverage the equity in your existing home to make a stronger, non-contingent offer on a new property. If your home qualifies, you can get your equity unlock amount approved in 24 hours or less, with no cost or commitment required. Once approved, you can confidently purchase your next home and then sell your current one vacant, avoiding the hassle of moving twice.

Here’s how HomeLight Buy Before You Sell works:

Although there’s a flat fee of 2.4% of your current home’s sold price, the potential savings you could see in other areas might outweigh the cost. For example, you might save on moving expenses, temporary housing, and even the final purchase price of your new home. On top of that, HomeLight’s BBYS fees are typically much lower than the interest rates on bridge loans, which currently range from 9.5% to 12%.

3 top hard money lenders in Cincinnati

Traditional lenders might not be the solution for every real estate investment. If you’re looking to move quickly and capitalize on an opportunity, explore the hard money lending options available in Cincinnati.

Investing in real estate?

Hire an investor-friendly real estate agent who can help you get access to off-market properties at a discount and assess potential rental income based on market trends. HomeLight can connect you with investment property specialists at no cost.

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Should I partner with a hard money lender in Cincinnati?

Working with a hard money lender in Cincinnati can be a smart choice for investors who need fast, flexible financing. These loans are beneficial for those involved in property flips, rental investments, or commercial real estate projects that might not qualify for traditional loans.

Since hard money loans are based on property value rather than credit history, they offer a way to secure funding quickly, allowing you to capitalize on opportunities in Cincinnati’s real estate market.

However, if you’re a homeowner looking to tap into your home’s equity without the higher interest rates and shorter terms that come with hard money loans, HomeLight’s Buy Before You Sell program might be a better fit. This program allows you to purchase your next home before selling your current one, making the transition smoother and less stressful. Carefully consider your financial situation and real estate goals to decide which option best meets your needs.

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