Long Beach Hard Money Lenders
Business and real estate investors in Long Beach know that they can trust Source Capital for all of their loan needs. With over a decade of experience, Source Capital has become a premier leader in the loan and finance market of California. If you need a loan for your business or real estate endeavor, find out why Source Capital is the market leader for hard money lending in Long Beach.
What is a Source Capital Hard Money Loan?
A hard money loan is a form of financing for many looking to purchase a home or start a small business. Our goal at Source Capital is to inform our new and potential clients on what a hard money loan is and how they can benefit. Hard money lenders are also known as direct or private lenders. A hard money loan is an asset-based loan through which a borrower receives funds secured by the value of their property or assets, rather than credit. Hard money loans are fast and easy. They are typically used for residential real estate but they can be used for commercial property and businesses. Source Capital has helped fund over $250 million in residential and commercial real estate loans. Here are some alternative forms of loans and some problems you might run into.
Securing a mortgages is a difficult and lengthy process. If you plan on purchasing a new home with a traditional mortgage, you’ll need months to get everything lined up., including a great credit score and plenty of documentation to prove your income. Before you can apply for a mortgage, you will first need to be pre-approved by a lender which can take weeks or months. Mortgages are long-term loans that can drag out for as long as 40 years, with rates that are unstable and subject to change. Fixed rate mortgages are available, but they often require a borrower to refinance in order to get lower rates down the road. In French, mortgage literally translates to “death contract”, but you don’t have to be bilingual to realize you might want to be cautious before seeking out one of these kinds of loans.
- Adjusted Rate Mortgages (ARMs)
Adjusted rate mortgages feature rates that fluctuate year to year; these rates are based on how the broader economy is doing. These kinds of mortgages can be especially risky because rates can spike as the economy improves, but fail to drop in an economy that’s dipping. Adjustment indexes can also be difficult to read and understand, especially for individuals who aren’t familiar with the financial market. It’s easy to think that an adjusted rate mortgage is going to be viable option when the economy is strong, but it’s almost always a gamble.
If you plan on building a home for yourself or through your business, home builder financing is an option. However, these loans can put a lot of pressure on the party taking it out. The mortgages’ approval is contingent upon a set of conditions at the start of the application. If you don’t finish building the home within the time frame that was agreed upon, the terms of your loan may change and you or your business could be faced with financial hardship as a result.
- Bank and Credit Union Mortgages
Your money in the bank might be government-backed but that doesn’t mean your loans and mortgages will be too. Many banks don’t offer government-backed mortgages, and the terms of your loan will be almost entirely dependent on your credit profile. Down payments on mortgages from banks and credit unions will typically be anywhere from 20-30%.
FHA stands for Federal Housing Administration. The FHA has mortgages with less rigorous lending requirements than banks and credit unions. The FHA might seem like a better option with small down payment requirements but their contracts last for 30 or more years. The borrower will also be required to pay for mortgage insurance.
Why You Should Choose a Hard Money Loan for Long Beach Real Estate and Business Investments
When it comes to traditional loans like mortgages, there are so many hoops to jump through. If one little thing goes wrong, you could find yourself renegotiating your mortgage agreement and end up paying higher interest rates. Don’t get gouged by fixed-rate mortgages that require hefty down payments or adjustable mortgages that will end up costing way more money than the bank will have you believe. Interest rates for Long Beach hard money loans are fixed rate and won’t change if you don’t build that house on time. Here is a general outline of what Source Capital can offer you when it comes to hard money loans:
- Fixed interest rates starting as low as 7.99%
- Funding within 7 days
- Terms up to 36 months
- No prepayment penalties
- Lender fees from 1.75 points
- Loans up to 70% LTV
Of course, not every loan is going to be the same and will vary based on the financial information that you provide. This should just give you a very general understanding of what to expect when you come to us for a hard money loan. We pride ourselves on our open and honest communication; if anything about your initial offer isn’t clear, don’t hesitate to contact us with any questions you might have.
Do I Qualify for a Long Beach Hard Money Loan?
If you have been turned down for a mortgage or business loan from a bank or lender, don’t worry, we can help. Source Capital is happy to assist and work with anyone who might not have great credit and is in need of a hard money loan in Long Beach. Our approval process is based on the value of you or your company’s assets. Long Beach hard money loans aren’t based on the trustworthiness of the borrower and we won’t discriminate against anyone who has filed for bankruptcy or foreclosure. Are you self-employed? We understand that sometimes finding financing for a home can be difficult when your income is self-sufficient. There is no minimum FICO score or minimum asset requirement, and we won’t ask you for paystubs or proof of income like a traditional lender from a bank. If you aren’t a natural citizen, don’t worry; we are happy to lend to foreign nationals who might be looking to start a small business or purchase a home.
How to Apply for a Long Beach Hard Money Loan
The application process for a Long Beach hard money loan is fast and easy. The entire application can be competed online from the comfort of your home or office and it won’t take more than 10 minutes. Once we receive and process your application, we will contact you with an initial offer. You can expect everything to be laid out in the simplest of terms with no fine print. If have any questions at all, our staff is readily available to answer anything that comes up. We don’t want you to move forward with the process unless you have complete confidence in your knowledge of the offer. You won’t have to wait weeks or months for a lender and then a bank to approve you, as we can fund your loan in a matter of days. Once approved, it’s easy to set up payments. We accept direct deposit, mail, and PayPal. You won’t ever receive a notification alerting you to hidden fees and ridiculous penalties. We are always here to answer any and all questions you might have about the process. Call or email us and find out how you can achieve your small business or real estate dreams.
Why You Should Choose Source Capital for a Long Beach Hard Money Loan
Source Capital has been financially assisting individuals and businesses for over 10 years. Other hard money lenders in Long beach get a bad reputation for hiding conditions and failing to be honest about their loans and clients. We are licensed on both the federal and state level. Our knowledge, dedication, client commitment, and professionalism are at the core of our company. Source Capital has an A+ rating with the Better Business Bureau. We let our customers’ experiences speak for us; with a 5-star rating on both Google and Yelp, you can trust that we will provide you with nothing but exceptional service. When it comes to hard money lending in Long Beach, there is no better source than Source Capital.