Hard Money Lenders New Orleans: Fast Funding Options

What are hard money loans used for?

Hard money loans address specific financing needs in the New Orleans real estate market. They’re often sought after by investors who require fast funding or may have difficulty qualifying for traditional bank loans. Let’s learn more about what hard money loans are typically used for:

Flipping a house: For New Orleans investors focused on flipping homes, hard money loans offer fast access to cash for purchasing and renovating properties. These quick-turnaround loans help flippers acquire properties in competitive markets, make necessary improvements, and resell them for profit quickly.

Buying an investment rental property: Investors seeking rental properties can use hard money loans to snap up properties fast, especially those needing immediate repairs. Compared to traditional bank loans, hard money loans allow landlords to complete renovations and generate rental income more quickly.

Purchasing commercial real estate: Hard money loans are often used in commercial real estate transactions due to their flexibility and quick closing times. They are particularly useful in situations where timing is crucial, and a quick decision can mean the difference between securing a valuable investment or missing out altogether.

Borrowers who can’t qualify for traditional loans: Individuals with substantial home equity but poor credit or other disqualifying issues sometimes approach hard money lenders in New Orleans for assistance. With hard money loans, qualification is determined more by the asset’s worth than the borrower’s credit score.

Homeowners facing foreclosure: Homeowners nearing foreclosure may use hard money loans to refinance their debts or buy time to sell the property. This can provide a temporary solution to avoid losing their home or a foreclosure mark on their credit report.

How much do hard money loans cost?

The cost of hard money loans is typically higher than traditional loans due to the increased risk lenders undertake and the convenience of quick, less restrictive funding. Here are some typical costs associated with hard money loans:

• Interest rates: These can range from 8% to 15% or higher, depending on the lender’s risk assessment.
• Origination fees: Lenders may charge 1% to 5% of the total loan amount as an origination fee.
• Closing costs: Additional fees at closing can include legal fees, appraisal fees, and other administrative costs.
• Points: Lenders might charge points (a percentage of the loan amount) upfront, which can add to the initial cost of obtaining a loan.

There are several different online calculators available to give you an idea of your costs.

How to buy before you sell

Sometimes, the perfect listing pops up when you’re least expecting it. Maybe it’s a charming Creole cottage or a modern condo in the Warehouse District. If you’re a New Orleans homeowner wanting to buy a new home before selling your current one, HomeLight offers an innovative solution that streamlines the process.

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%.

Traditional lenders may not always suit every real estate investment. If you need to move quickly to take advantage of a valuable opportunity, consider partnering with one of these top-rated hard money lenders in New Orleans.

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 New Orleans?

The decision to use a hard money lender in New Orleans should be based on your individual situation and real estate investment goals. Hard money loans are ideal for projects requiring quick turnaround or when traditional financing isn’t an option. If you’re ready to manage the higher costs and shorter repayment terms in exchange for fast, flexible funding, consider contacting a hard money lender in New Orleans for your next investment opportunity.

For homeowners looking to tap into their home’s equity, a program like HomeLight’s Buy Before You Sell might be a better fit. Instead of taking on a sky-high interest rate, you’ll pay a small flat fee while benefiting from a more competitive offer and a simplified move.

As with any major financial decision, consider your long-term strategy and consult with a financial advisor to make sure it aligns with your overall investment goals. If you’re looking to connect with investor-friendly real estate agents in New Orleans who have access to trusted hard money lenders, let HomeLight introduce you to top professionals in your area who fit that criteria.

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