People do not know that hard money loans can be an easy way to finance an investment especially real estate. Although the loan application can be complicated and challenging from the average loans, hard money loans Los Angeles services can help a great deal. Many of those who want the hard money are not prepared to apply.
Do not be one of the unprepared potential borrowers, read the following questions on hard money loans:
- What is the Process for Getting Hard Money Loans?
Hard money loans are a great way for investors to access cash to finance investment properties. You can get funding quickly in less than three days and all the necessary documents from Title Company. Hard money loan is commonly available for funding residential houses and real property such commercial projects.
- What is the Interest Rate?
The interest rate is a variable factor. This is because it depends on the lender. However, the rate may range from 10 percent to 18 percent per annum. In most cases, the interest is paid monthly. Lenders tend to differ a lot as there are those who prefer payoffs and there are those who want installments.
- What Loan-to-Value are Hard Money Lenders Seeking?
Usually, loans do not go above 70 percent of the ARV (after repaired value). The figure is typically arrived at by appraisers and repairs.
- How Long is the Loan for?
Hard money loans Los Angeles offers allow between three months to twelve months, although this depends on the lender and the amount you want. Longer repayment periods are usually accompanied by increased costs and interest rates.
- What Are the Costs?
Hard money loans require insurance, title policy, and appraisal. These services are accompanied by charges or rather commissions from a few hundred dollars to thousands of dollars. These loans also need origination points starting from 2 to 10.
- Can I Get Money Pay for Repairs?
It is easy to get cash for repairs. However, you have to submit a DRAW REQUEST and fill out the form to the lenders. This form is used to identify finished repairs invoices and copies from contractors. Draws can be dispersed as soon as the work is fully inspected- work is never paid in advance.
- Does the Credit Score Matter?
Credit may matter or not. Hard money loans Los Angeles has today check credits not crucial for credit scores, but to determine foreclosures, bankruptcies collections and charge offs. They usually test for the ability of the borrower to pay. Hard money loans are collateral-based.
- Do I Need to Put my Cash Down?
Yes, you have to put some of your cash down. Most hard money lenders want to make sure that you have sufficient money to complete repairs and other costs associated with the loan. You should expect to pay all the points and related expenses before closing. If you cannot close, then you may not be able to receive this loan.
Therefore, if you need more help regarding hard money loans, do not hesitate to contact Evoque lending for more information. You can also check out the official website at http://evoquelending.com/borrow-money/