Hard Money Lenders Greenville, SC: Fast Funding

What are hard money loans used for?

Hard money loans can be an effective solution for various real estate scenarios where traditional financing falls short. Here’s a look at different situations where this type of loan can be a game-changer for investors and homeowners.

• Flipping a house: Flipping homes requires quick access to funds for purchasing and renovations. Hard money loans provide the speed and flexibility needed to secure a property, make improvements, and sell it for a profit before the loan term ends.
• Buying an investment rental property: Investors looking to purchase rental properties can use hard money loans to quickly acquire a property in a competitive market. The faster funding allows them to buy, renovate, and start generating rental income faster than with traditional loans.
• Purchasing commercial real estate: When acquiring commercial properties, timing is everything. Hard money loans can facilitate the swift purchase of commercial real estate, enabling investors to capitalize on lucrative opportunities that require fast action, which might not be possible with conventional financing.
• Borrowers who can’t qualify for traditional loans: Those with less-than-perfect credit or high debt-to-income ratios often struggle to get approved for traditional loans. Hard money lenders focus more on the property’s value and less on the borrower’s financial history, making it easier to secure funding.
• Homeowners facing foreclosure: For homeowners in danger of foreclosure, a hard money loan can provide a temporary solution. This financing can help them pay off existing debt or make necessary payments to retain their property, buying time to explore other options.

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 you 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 help buyers purchase homes with lower down payments and reduced interest rates.

Peer-to-peer loan: These loans are provided by individual investors through lending platforms like MeridianLink or 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

If you’re looking to buy a new home before selling your current one in Greenville, HomeLight’s Buy Before You Sell (BBYS) program offers a streamlined solution. BBYS allows you to leverage your existing home’s equity to make a stronger, non-contingent offer on your next property.

With this program, you can get your equity unlock amount approved in as little as 24 hours, allowing you to move forward confidently with your purchase. Once you’ve bought your new home, you can sell your current property vacant, which often results in a faster sale and better price.

While there is a flat fee of 2.4% of your current home’s sold price, the savings in areas like moving costs and potential discounts on your new home can outweigh this cost. Plus, BBYS fees are typically lower than bridge loan rates, which range from 9.5% to 12%.

Here’s how HomeLight Buy Before You Sell works:

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 Greenville.

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 Greenville?

Choosing a hard money loan in Greenville should align with your real estate investment goals and financial situation. These loans are ideal for real estate investors who need quick funding for projects like house flips or rental property acquisitions. If you’re ready to handle higher interest rates and shorter terms for the benefit of fast and flexible financing, a hard money loan could be the right move.

For homeowners looking to tap into their home’s equity to purchase their next property, HomeLight’s Buy Before You Sell program offers a compelling alternative. With this program, you can avoid the high costs associated with hard money loans and instead pay a simple flat fee to make a strong offer on your new home.

Ultimately, the right choice depends on your specific needs and long-term plans. Whether you’re an investor or a homeowner, HomeLight can connect you with the right resources and solutions in Greenville.

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