Hard money loans are great, but if you are doing your research, you know that their interest rates are high. This could be a definite turn off for you, but don’t let this deter you if you struggling and need the money. Just remember that getting a loan from a hard money lenders in Arizona is entirely different than getting a loan from a conventional lending institution.
There are no low interest rates in an Arizona hard money loan unfortunately. You may as why, so let us tell you; while Hard money lenders in Arizona do want to lend to you, you do have to keep in mind that they are taking a significant risk in doing so because they do not base their decision on your credit or ability to pay. It’s true, you can have absolutely terrible credit and still get a hard money loan. However, you will never see yourself get a hard money loan with a 3% interest rate. Ever. That is said without hesitation. Hard money loans are mainly short term and contain higher interest rates. The typical loan is anywhere from three to nine months—never the 30 year traditional mortgage.
Don’t Let This Discourage You! You can still get a loan from a Hard Money Lender in Arizona!
It is true that the entire loan process is entirely exhausting and frustrating process. However, if you do everything correctly and see it to the end, you can be rewarded with a loan so you can keep your house or your property and your peace of mind. You don’t have to let the higher interest rates deter you from pursuing a loan, but do keep in mind that you don’t pay all that much in interest because the length of the loan is so incredibly short. This doesn’t make a hard money loan any better than a soft money loan or vice/versa. You just won’t be spending tens of thousands of dollars on interest with hard money. Comparing the two types of loans is like comparing apples and oranges—just plain different. For the most part, hard money lenders in Arizona will likely not be offering you single digit interest rates. That can be a harsh reality to face, but it’s good to know.
Hard money lenders in Arizona tend to lower the interest rates for experienced investors, so if you’re new to the game, you may just want to hang in there for a while and feel it out and do your research!
- Big Daddy Dennis Hard Money Lender
Level 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix AZ 85027