Hard Money Lenders Denver: Quick Funding Options

What are hard money loans used for?

Hard money loans can be a versatile tool for various real estate needs:

• Flipping a house: Perfect for flipping homes, providing quick funds for renovations.
• Buying an investment rental property: Investors use these loans to quickly secure rental properties.
• Purchasing commercial real estate: Ideal for acquiring and renovating commercial spaces.
• Borrowers who can’t qualify for traditional loans: Provides an option for those with less-than-perfect credit or unusual income sources.
• Homeowners facing foreclosure: A solution for homeowners looking to avoid foreclosure by tapping into their home equity for necessary funds.

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:

• Interest rates: 8% to 15% or higher, based on the assessed risk.
• Origination fees: 1% to 5% of the loan amount.
• Closing costs: Legal, appraisal, and administrative fees.
• Points: A percentage of the loan amount charged upfront.

Online calculators can help estimate these costs.

Alternatives to working with hard money lenders

If you’re considering alternatives to hard money loans, here are some options:

• Take out a second mortgage: Consider a home equity loan or HELOC.
• Cash-out refinance: Refinance an existing property to pull out cash.
• Borrow from family or friends: Often offers more flexible terms and lower costs.
• Use a government-backed loan program: Programs like FHA loans can provide lower rates.
• Peer-to-peer loan: Online platforms offer loans from individual investors.
• Specialized loan programs: Explore options for specific needs like fixer-uppers.
• Request a seller financing option: Some sellers may finance the purchase directly.

How to buy before you sell

HomeLight’s Buy Before You Sell program simplifies the process of buying a new home before selling your current one. This program allows you to make a competitive offer on your next home without the contingency of selling first. By covering the costs of your new home upfront, HomeLight helps you avoid the stress and uncertainty of timing both transactions perfectly.

The program offers several benefits:

• Move into your new home before selling the old one.
• Avoid double moves or temporary housing.
• Gain more control over your selling timeline.

Here’s how it 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 Denver

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

Should I partner with a hard money lender in Denver?

Deciding whether a hard money loan is right for you depends on your goals and circumstances. These loans are best suited for real estate investors who need quick access to capital for projects like house flipping or acquiring rental properties. They offer speed and flexibility but come with higher costs and risks.

For homeowners looking to leverage their equity without the higher costs of a hard money loan, consider HomeLight’s Buy Before You Sell program. This option allows you to buy a new home before selling your current one, giving you the convenience and financial flexibility needed in Denver’s competitive market. Explore all your options and choose the one that aligns best with your needs.

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