New Jersey Hard Money Lenders
Selecting the right New Jersey hard money lender will enable you to finance your rehab project or provide the bridge financing needed to help you purchase an investment property. Let us help you to find the right hard money loan program for your real estate project in New Jersey.
What is a Hard Money Loan?
A hard money loan is a high cost, easy to secure mortgage for investment properties or rehab projects. They have higher interest rates, easier to qualify for, require less paperwork, and they are typically held for 2-24 months.
Read more about [Hard Money Loans]
Types of Hard Money Loans
Fix and Flip Rehab – These loans are designed to help with the purchase of the home, plus finance the rehab. They are short term loans with higher interest rates. Read [Fix and Flip Loans]
Long Term Rental – For long term rentals, you will likely have a competitive rate and a loan term of up to 30 years.
Construction – If you are thinking about building a new investment property, then you can finance the build with a hard money construction loan.
New Jersey Hard Money Lenders
There are many hard money lenders in New Jersey and each one may have different down payment requirements, rates, and fees.
Although we will provide you with a list of hard money lenders in New Jersey below, it is best to call us 732-761-9041 to discuss your needs first. Then, we can help pair you with the right lender for your unique situation.
These are just a few of the lenders who can help with your hard money loan. However, it is possible that none of them are suited for your specific situation. Let us help you to get matched with the perfect hard money lender in New Jersey.
Do Hard Money Lenders Require a Down Payment?
Hard money lenders will ask for a down payment of 10%-40% depending upon the deal, the type of hard money loan, and your experience as a real estate investor.
The loans that have a down payment as low as 10% will usually be a fix and flip loan. They will usually lend you the money needed to purchase the home plus up to 75% of the ARV (after repair value) of the home.
If you are buying a home to hold for a while, the down payment may be larger at 20-30%. However, if you plan to keep the property and the mortgage long term, then it may be better to look into a no document investment loan rather than a hard money loan.
Do Hard Money Lenders Check Credit?
Hard money lenders do check your credit scores. There are lenders who will not work with you if your credit scores are low. However, small private hard money lenders may not check your credit if you have a large down payment.
Who is the Best Hard Money Lender?
The best hard money lender is one who will have a competitive program with reasonable fees. If you have a unique situation, the best hard money lender may simply be the one who is able to work with your parameters.
The Dangers of Hard Money Loans
It is important to read through the terms of your agreement with a hard money lender. This is especially true with smaller companies who are not well established. If you are not careful, you could sign loan documents that are not favorable for you with the potential to lose the property.
Some lenders will offer you the funds you are looking for, but in exchange for being a partner in your real estate deal. This is obviously not optimal and should be avoided and used only as a last and final option.
Finally, if you are not careful, the costs related to hard money loans can be extremely high. Make sure you fully understand the terms of the agreement, the closing costs, and if there are penalties.
Let us help to find the best hard money loan option for you in New Jersey so you can move your real estate project along.