Virginia Beach Hard Money Lenders: Quick Approval Loans

What are hard money loans used for?

Hard money loans serve various purposes in real estate investing. Here’s a look at five common uses:

1. Flipping a house: These loans provide quick funds to purchase and renovate homes, helping you capitalize on market opportunities. (Learn more)
2. Buying an investment rental property: Investors use hard money loans to acquire rental properties, leveraging the property’s future rental income for repayment. (Learn more)
3. Purchasing commercial real estate: Quick financing can help secure commercial properties in competitive markets, where timing is crucial. (Learn more)
4. Borrowers who can’t qualify for traditional loans: Those with credit issues can still access funds based on the property’s value rather than their financial history. (Learn more)
5. Homeowners facing foreclosure: Hard money loans can offer a lifeline to prevent foreclosure, allowing homeowners to refinance or sell under better conditions. (Learn more)

How much do hard money loans cost?

Hard money loans generally cost more than traditional loans due to the increased risk and convenience of quick funding. Typical costs include:

Interest rates: These range from 8% to 15%, depending on the lender’s risk assessment.

Origination fees: Lenders charge 1% to 5% of the loan amount as a fee for processing the loan.

Closing costs: Additional fees at closing can include legal fees, appraisal fees, and other administrative costs. (Learn more)

Points: Lenders might charge points (a percentage of the loan amount) upfront, adding to the initial cost. (Learn more)

You can also use online calculators to estimate your hard money loan costs, ensuring you have a clear understanding of the financial commitment involved.

Alternatives to working with hard money lenders

If hard money loans don’t seem right for you, consider these alternatives:

Take out a second mortgage: A home equity loan or HELOC can provide needed funds at a lower interest rate.

Cash-out refinance: Refinance your existing property to pull out cash for your new investment, often at lower interest rates. (Learn more)

Borrow from family or friends: Personal loans from family or friends can offer flexible terms and potentially lower or no interest.

Use a government-backed loan program: FHA, VA, or USDA programs can help with lower down payments and reduced interest rates.

Peer-to-peer loan: These are typically individual investors found through lending platforms and offer loans with varying terms.

Specialized loan programs: Look into loans for fixer-uppers or investment property refinancing.

Request a seller financing option: Sellers may finance the purchase themselves, resulting in lower closing costs and less stringent eligibility requirements.

How to buy before you sell

Sometimes, the perfect listing pops up when you’re least expecting it. Maybe it’s a rare mid-century modern home or a two-bedroom condo within walking distance of your job.

If you’re a Virginia Beach 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 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 Virginia Beach

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 Virginia Beach.

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.

Get Started

Should I partner with a hard money lender in Virginia Beach?

The decision to use a hard money lender in Virginia Beach 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 Virginia Beach 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 benefitting from a more competitive offer and a simplified move.

As with any major financial decision, consider your long-term strategy and consult a financial advisor to ensure it aligns with your overall investment goals.

If you’re looking to connect with investor-friendly real estate agents in Virginia Beach who have access to trusted hard money lenders, let HomeLight introduce you to top professionals in your area who fit that criteria.

Header Image Source: (jomo333 / Depositphotos)