As with any type of financing, hard money lender rates can vary. In fact, you’ll find that even within Atlanta, hard money lenders’ interest rates can be significantly different.
Most hard money loans are available at rates between 10 and 18 percent, although you will find some that charge higher interest rates.
What Does Paces Funding Charge for Interest?
Interest rates here vary from 13 to 15 percent per annum, interest only, depending upon the collateral and the loan structure.
Why Do Hard Money Loan Interest Rates Vary?
As with traditional financing, hard money loan interests vary between lenders. Typically, because these loans are higher-risk than those that are approved by traditional lenders (including big-name banks), the interest rates are higher than they would be on a conventional loan.
While credit doesn’t matter as much as it would with a traditional loan through a bank, it does have some impact on your chance of approval through a hard money lender – but hard money lenders don’t base your entire acceptance or rejection on your credit score. In fact, people with less-than-perfect credit are often able to secure this type of financing.
One thing to remember is that hard money loans are short-term; they typically last for 12 months or less.
Additionally, hard money lenders can act quickly, whereas big, conventional banks can take months to approve financing. (In some cases, a hard money loan application can be approved and completed within 10 to 14 days, as long as there are no unusual circumstances, such as title issues.)
Do You Need to Find Out About Hard Money Loan Interest Rates in Atlanta?
If you’d like to find out what your interest would be on a hard money loan from Paces Funding, call us at 404-814-1644 or get in touch with us online. We’ll be happy to answer your questions and get your loan application started.