Residential Hard Money Lenders
Residential hard money lenders, as the name suggests, deal primarily in residential real estate.
Residential hard money loan programs are designed specifically for investors who buy distressed properties that need repairs, at significant discount to a similar property that is up to date and well maintained.
These loans are based on the ARV (after repair value). The difference in price is then used as a type of cash advance to invest in repairing and restoring the property at a profit.
Residential hard money lenders help individuals purchase a wide variety of properties. In addition to paying a large percentage of the after-repair value, it will also pay for the closing costs, which can be up to $25,000 or more.
Commercial Hard Money Lenders
Commercial hard money lenders are available for purchasing or refinancing commercial income-producing properties that don’t qualify for more conventional loan or financing programs.
For properties to qualify for this type of commercial hard money loan program, they are often in need of improvements, repositioning, or low occupancy.
These specialized lenders are for individuals with an eye for smart investment choices. Individual credit score, as well as the property’s profit potential, play a large part in the approval and terms of the commercial hard money loan.
Most importantly, these loans have very short terms, typically a few months. This requires a solid repayment plan payoff the advance quickly.
Which Hard Money Loan Program is Right for You?
As you can see, both residential and commercial loan programs have a very specific role to play in providing quick access to investors with a solid investment plan.
If you would like to learn more about residential or commercial hard money loans, call Noble Mortgage today at 214-492-0100 to speak to a loan specialist, or contact us online.
You can also get pre-approved online! A hard money loan specialist is standing by to talk to you.