If you’re like many homeowners, you’ve considered getting a hard money rehab loan for your Atlanta home. However, you may not know enough about hard money rehab loans to decide whether or not it’s a good idea.
What is a Hard Money Rehab Loan?
A hard money a rehab loan is cash you borrow from a lender so you can make improvements to a property. In some cases, particularly when you own your property with no encumbrances (you don’t owe any money on it), you may wish to take out an equity loan.
Paces Funding can lend you up to 50 percent of the property’s value if you choose cash out equity lending. However, it’s incredibly important that you have a solid repayment strategy in place before choosing this type of hard money loan.
A hard money rehab loan is not quite the same as cash out equity lending is.
Many investors choose to take out a hard money rehab loan in Atlanta and improve a property, then sell it at its new value.
Projects that require extensive amounts of work are a bit riskier for lenders. That means it may be more difficult to get approval for a rehab loan. However, when traditional lenders are afraid to grant rehab loans, many hard money lenders pick up the slack.
What Hard Money Lenders Consider With Rehab Loans
Because rehab loans are typically risky, hard money lenders typically consider:
- How much you paid for the property originally
- The upside potential of the property
- The extent of the rehab
- Your personal financial situation
Do You Need a Hard Money Rehab Loan in Atlanta?
If you’re looking for a hard money rehab loan in Atlanta, we may be able to help you.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.