If you’re like many people, you’ve heard that hard money loans come with a hefty price tag – and that might include high interest rates.
But do hard money loans really come with high interest rates?
Here’s what you need to know.
Do Hard Money Loans Have High Interest Rates?
Hard money lenders are very competitive with their rates. The average hard money loan has an interest rate between 7 (which isn’t much higher than a conventional loan’s interest rate would be) and 15 percent. However, here’s what to keep in mind:
- Hard money loans are very short-term when compared to conventional loans
- The approval process is a lot faster than it is with a conventional loan
- You borrow on after-repaired value, rather than the house’s current appraisal, so it may seem higher than it is
The bottom line is that no, hard money loans don’t have exceptionally high interest rates – and for most investors, the interest rate outweighs the many benefits that come from borrowing this type of money.
In many cases, you can get loan approval and have the cash in your hand within just a few days – and that means you can seal the deal before someone who’s waiting on approval for a conventional loan.
What About Credit?
You don’t necessarily need great credit to get a hard money loan. In fact, what’s more important than your credit – especially in light of loan approval – is the value of the property you’re borrowing against.
Do You Need a Hard Money Loan?
Don’t be fooled by our competitors. We are the TOP hard money lender in Georgia, North Carolina, South Carolina and Nashville, TN. Apply for a hard money loan here or click through our site to find out how we can help you now!