There are several types of rehab loans you can take out in Atlanta, but the main idea behind them are all the same – and that’s to upgrade or rehabilitate a property so it’s worth more money.
So what, exactly, is a rehab loan, and is it right for you?
Hard Money Rehab Loans
A rehab loan is money that you get from a lender to make improvements to a property. The problem with traditional rehab loans is that many homes that are in desperate need of upgrades or rehabilitation are damaged – and lenders usually require those improvements to be completed before they’ll consider giving up money when they perceive the transaction to be risky.
That leaves investors with few options, but one of them is to borrow through a hard money loan in Atlanta to complete the necessary repairs and then sell the home at its new value.
Hard money lenders may not consider the property’s future worth while determining the loan-to-value ratio, but it usually has some bearing on what the lender will think of how risky the transaction will be.
Naturally, projects that require a lot of work may be tougher to get approved on; that’s because a paint job and minor cosmetic repairs are far less risky than a vacant building that could be falling apart.
Just like with traditional loans, when you’re borrowing money from a hard money lender, it’s a good idea to have your financial ducks in a row. The stronger your credit, the higher your chances of being approved for a hard money loan.
Are You Thinking of Borrowing from a Hard Money Lender?
We’ll be happy to answer any questions you have – just call us at 404-814-1644 or contact us online if you’d like more information about borrowing from a hard money lender in Atlanta. We specialize in helping people get the money they need to grow their investments, and we may be able to help you, too.