Hard Money Lenders Oklahoma: What You Need to Know

What are hard money loans used for?

Hard money loans serve various needs within the Oklahoma real estate market. These loans are often sought by those needing quick funding or who face challenges qualifying for traditional loans. Here are some common scenarios where hard money loans can be particularly useful:

Flipping a house: For Oklahoma investors involved in flipping homes, hard money loans offer fast funding to purchase and renovate properties. This allows flippers to make needed renovations and resell for profit in a short period of time.

Buying an investment rental property: Investors looking to buy rental properties can use hard money loans to secure and upgrade properties quickly. This allows them to begin generating rental income without waiting for lengthy loan approvals.

Purchasing commercial real estate: Hard money loans are ideal for commercial real estate deals due to their flexibility and speed. They are beneficial in situations where quick decisions are needed to secure valuable investments.

Borrowers who can’t qualify for traditional loans: People with substantial home equity but poor credit histories might find hard money loans a viable option. These loans focus more on the property’s value than on the borrower’s credit score.

Homeowners facing foreclosure: Hard money loans can help those nearing foreclosure by refinancing their debt or providing time to sell the property. This solution helps avoid the severe consequences of foreclosure.

How much do hard money loans cost?

Hard money loans tend to be more expensive due to their high-risk nature and speedy approval process. Here’s a breakdown of typical costs:

• Interest rates: Usually range from 8% to 15%.
• Origination fees: Generally, 1% to 5% of the loan amount.
• Closing costs: Includes various fees, like legal and appraisal fees.
• Points: Points, a percentage of the loan amount, typically range between 2% and 4%.

You can use online calculators to estimate your total loan costs.

Alternatives to working with hard money lenders

If you’re a homeowner searching for ways to leverage your home’s equity, consider these alternatives:

Take out a second mortgage: A home equity loan or HELOC allows you to borrow against your home’s equity, often with lower interest rates than hard money loans.

Cash-out refinance: Refinancing your existing property lets you pull out cash to finance new investments, usually with lower interest rates than hard money loans.

Borrow from family or friends: Personal loans from family or friends can provide flexible repayment terms and potentially lower interest rates, making them more affordable.

Use a government-backed loan program: Programs like FHA, VA, or USDA loans help purchase homes with lower down payments and reduced interest rates.

Peer-to-peer loans: These loans are funded by individual investors through platforms like Lending Club or Prosper, providing terms that can be more flexible than traditional loans.

Specialized loan programs: Specialized loans can be useful for those looking to refinance an existing hard money loan, especially for investment properties or fixer-uppers.

Request a seller financing option: Some sellers might agree to finance the purchase directly, which can result in lower closing costs and simpler qualification criteria.

How to buy before you sell

Imagine finding your dream home when you least expect it — maybe it’s an upscale townhouse in Midtown OKC, or a timeless Tudor in Tulsa. For Oklahoma homeowners wanting to buy a new home before selling their current one, HomeLight’s Buy Before You Sell program is a game-changer.

The Buy Before You Sell (BBYS) program lets you use the equity in your current home to make a strong, non-contingent offer on a new property. If your home qualifies, you can get your equity unlock amount approved in less than 24 hours without any upfront costs or commitment. This approval lets you purchase your new home confidently and then sell your current one vacant, avoiding the stress of moving twice.

Here’s how HomeLight Buy Before You Sell works:

While there’s a flat fee of 2.4% of your current home’s sold price, the savings from avoiding temporary housing, additional moving costs, and even securing a better price on your new home can outweigh this fee. Plus, HomeLight’s BBYS fees are significantly lower than bridge loan interest rates, which currently range from 9.5% to 12%.

3 top hard money lenders in Oklahoma

Traditional lenders might not work for every real estate investment. If you need to move quickly and take advantage of an opportunity, look into the hard money lending options available in Oklahoma.

Should I partner with a hard money lender in Oklahoma?

Deciding whether a hard money loan is right for you in Oklahoma depends on your specific situation and investment goals. Hard money loans are best suited for real estate investors who need quick funding for projects that traditional financing won’t cover. If you can handle the higher costs and shorter repayment terms, a hard money loan might be the right choice for your next investment in Oklahoma.

For homeowners looking to access their equity without the high interest rates, HomeLight’s Buy Before You Sell program is a compelling alternative. This program allows you to pay a small flat fee while making a more competitive offer and simplifying your move.

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

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