Hard Money Rehab Loans
Want to install a new kitchen, update your bathrooms, or add a new room to your home? Source Capital offers the financing you need to give your property a much needed facelift. Hard money rehab loans help people raise the equity of their home by giving our clients the funding they need to move forward with their projects.
Source Capital is the preferred lender for hard money loans, including hard money rehab loans. For over a decade, we’ve been a proven source for hard money loans in California, Arizona, and Minnesota. We provide superior hard money rehab loans at a fair rate that allows our clients to complete the projects they’ve envisioned without breaking the bank. Not only do our loans beat out our competitors’, but we’ve been rated as having some of the best services of all lenders. We have received an “A+” rating from the Better Business Bureau of America for our excellent customer service and have earned a stellar reputation with 5-star ratings from both Google and Yelp. Our responses prove that you can trust us when it comes to hard money loans. At Source Capital, you can rest assured that you’re getting the best of the best in real estate investments and customer service. Let us be your go-to for rehab hard money loans and you will not be disappointed.
What is a Hard Money Rehab Loan?
Most investors won’t grant a mortgage on a home in poor condition, especially if the client has a less than stellar credit history. If they do, it’s usually granted to already established fix and flip businesses with a proven track record of successfully rehabbing and flipping homes.
So what’s a buyer to do? This is where hard money rehab loans come in. A hard money rehab loan is a private loan provided by one or a group of private investors. These loans are designed to allow the purchaser to plan and complete repairs on their home. Unfortunately, banks generally don’t want to lend on a property that’s in bad shape unless the home is already repaired, which creates a quandary for people who want to rehab a home. Fortunately, hard money rehab loans allow buyers to purchase a property with a loan that accounts for the cost of repairs and improvements.
Hard money rehab loans are designed to help homeowners and buyers improve their existing residence or buy a secondary home that will increase in value with upgrades. Rehab loans are the ideal financing option for those who want to raise their home equity fast. Outdated kitchens, old plumbing, and other features that can be brought up to date will not only help you enjoy your property now, but also make it sell for a higher profit later on down the line. If you plan to buy a secondary home, you can use a hard money rehab loan to purchase a property at a lower price due to its rundown condition.
Why You Choose a Hard Money Rehab Loan from Source Capital
Our prestige and accreditation from the BBB and reviewers on Yelp and Google prove that we have what it takes to give you the property you desire at a reasonable rate. Unlike other lenders, who typically lend hard money loans up to 12 months, our loan terms extend up to 36 months—that’s three years to beautify your property and complete your payments! We understand that a 12 month timeline just isn’t realistic for many renovators. Rehab plans change, costs change, and the time it takes to hire the right contractor can take time.
Why do people prefer Source Capital for hard money loans? First of all, we don’t have prepayment penalties. There are generally two prepayment penalties to watch out for—soft prepayment penalties and hard prepayment penalties. A soft prepayment penalty allows a borrower to sell their home at any time during the length of the loan without penalty so long as they don’t refinance their mortgage. On the other hand, a hard prepayment penalty sticks the borrower if they sell their home or refinance their mortgage. This is the riskier option because it doesn’t allow any room for a borrower to alleviate their loan if they need to sell their home quickly. Many banks don’t allow you to pay more than 20 percent of the loan balance each year. We save you from this penalty so you can invest safely and with more flexibility.
In addition, our loan rates start at 7.99 percent, which is over 2 percent less than many other hard money lenders. We loan to value up to 70 percent so you don’t have to deal with the burden of paying too much upfront to start your project. The cherry on top? Our origination fees start from just 1.75 percent.
We have some of the most advantageous commercial hard money loan terms in the industry, and part of that prestige comes from how we treat our clients. Besides providing excellent customer service, we promise to omit ridiculous junk fees that state themselves in the fine print. Call us now to see your options, and apply for free!
Qualifying for a Hard Money Rehab Loan
Hard money loans for rehab are unlike any other loan out there. You can breathe a sigh of relief knowing you can purchase a home with poor credit. We don’t enforce the same limitations that prevent so many from purchasing a home or pursuing their real estate dreams. Shopping for loans is difficult; there are a plethora of restrictions that vary from loan to loan, and parsing out which loan is right for you can be exhausting, and banks are extremely cautious when it comes to giving out loans. Then, once you find the loan you think you want, it still takes months to approve and obtain. During that time, your loan request may be rejected or your funds arrive too late, causing your property slips through your fingers.
Rehab loans of hard money don’t have the same restrictive requirements that banks and credit unions have. Conventional lenders will scrutinize your credit score, analyze your financial history, investigate your marital status, find out your income, and even judge your job position. They use this criteria to accept or reject your loan, and even if the loan is accepted, it can take months to get the funds in your hands. This isn’t what we do at Source Capital; our hard money rehab loans are based on the value and potential of the property you wish to purchase, not your financial history. We don’t think our clients should be judged based on their financial past, and instead, we want to give them a chance to create a better financial future. Whether you want to raise the equity of your home or a new secondary residence, our hard money rehab loans are designed to get you what you need fast to get started on renovations right away.
Bypass the hassle of traditional loans of hard money for rehab from Source Capital. Our asset-based approach to funding real estate endeavors is founded on what’s called the After Repair Value of the property. Our group of private lenders assess how your plans can raise the equity of your primary or secondary residence. Source Capital lenders have expert knowledge on the real estate market in your area and know how to make quick decisions on the value of your home.
We want to work with you to make your rehab venture a success. That’s why we’re willing to our loan terms with you. Our flexible terms have allowed our clients the freedom to invest as they please without the heavy burden of strict financing. Our private lenders will be more than happy to sit down with you and discuss interest rates, fees, and repayment schedules. We’ll also answer any question you may have to clarify the process.
Hard Money Loans Tailored to You
Now that we’ve reached our ten-year anniversary, we can proudly say that we’ve financed over $250 million in hard money loans to our satisfied borrowers, brokers, and real estate professionals. Our team of real estate professionals have a combined experience of over 65 years and have worked with a vast array of borrowers in unique situations. We beat the competition by making our loans more cost effective and efficient. With Source Capital, your investment is in good hands.
Call us now at 888.235.7191 to chat with an expert right away and gain insight into our loan terms and process. At Source Capital, We want you to create the home of your dreams and raise your home equity to give you future financial success.