Keeping your home in good repair in Florida is critical to maintaining its value, and to prevent deterioration over time. Perhaps now is the time you need to do some improvements, but the commercial banks have been reluctant to provide you the money, and it’s more than you can put on a credit card. Why not look at a hard money loan?
Another scenario might involve an investment property that you need to rehab, but you don’t have the ready cash to do renovations in order to place it back on the market. Commercial banks typically look at the current value of your asset to determine the Loan to Value ratio they use for loan processing. Hard money investors, on the other hand, are often willing to look at the property’s “after repair” value which will be significantly higher. This will make you eligible for a greater loan value.
Regardless of how you intend to use it, hard money for home improvement can make a lot of sense, particularly if you intend to repay the loan in relatively short order. Hard money loans are often set for several months to just a few years, not like conventional loans that can run for a decade or more. You must keep in mind that hard money investors are looking for higher interest rates than a conventional bank, because they are not using your credit score or income history alone to qualify you. They look for the equity of the investment you hold, whether it is your personal home or an investment rehab property. This is to your advantage if you have little or no credit history, because you will not be able to get a conventional home improvement loan from a traditional bank Investor.
If you plan to seek hard money investors for home improvement, a sketch of your plans on a napkin won’t be sufficient. The investors will want to see architect or builder plans, an improvement or rehab budget, an appraisal of the property, and contractor bids for the work you expect to perform with the home improvement money. If you do your homework in advance, you can obtain hard money loans quite rapidly, without the usual bank red tape.
AHL Hard Money Loans should be your first choice for hard money home improvement loans. Check out our website for more information on hard money financing, and give us a call at (813)516-5210 if you have questions or want to obtain hard money for your next home improvement.