If money is required quickly for a much shorter period than a traditional loan, a hard money loan is a viable alternative. Borrowers also prefer a hard money loan, as we have mentioned in the past, when they wish to buy a property for “patch and sell” purposes. Some of the factors surrounding the loan and the chances of approval include the amount of equity in the property and the repayment schedule are two items that will decide approval. Another aspect that is also taken into account is evaluation.
It’s not all that hard to understand appraisal. Property value is measured with sales of neighborhood properties taken into account. The appraisal may also provide a price from a broker. It’s worth looking for a broker with a good reputation to provide unbiased reviews to ensure the utmost accuracy. If you want to make sure it is correct and just, you may recommend that another appraiser review the original appraisal.
When an appraisal indicates that the value of the property will increase after the loan has been accepted and the expected upgrades are finished, it is more likely that a hard money lender will provide financing. On the other hand, if the appraisal indicates that the value of the property won’t improve significantly, the chances of approval could be decreased.
This update is by hard money loans Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on Florida hard money lending, please call 954-816-0388 or fill out our application.