The deep history of San Antonio places it as one of the most desirable places to live in the United States. From the historical Alamo to the contemporary art scene, the city boasts some of the most diverse attractions in Texas!
San Antonio’s big-city amenities and world-renowned attractions, mixed with a relaxing and inviting atmosphere, make it an excellent choice for real estate investing, but you may miss out on the opportunity if you don’t have a reliable source of financing. Now is the time to get in the game - Longhorn Investments is here to help!
What Is Hard Money Lending?
Hard money lending is a type of financing secured by a property, making it less risky for the lender while providing quick access to capital for the borrower. It is often used by real estate investors who need immediate cash or have been turned down by traditional lenders due to poor credit or insufficient income.
The application process for hard money loans is typically faster and less strict, but they come with higher interest fees and may require a larger down payment. However, despite the drawbacks, hard money loans can be valuable for those needing fast lending with flexible payment plans.
Hard Money Lending vs. Other Types of Lending
When it comes to borrowing money, there are two main options available for potential loanees. They can approach traditional lending institutions like banks and credit unions or borrow from hard money lenders in San Antonio.
One of the main advantages of hard money lending is the speed at which funds can be obtained. Traditional lenders often have a lengthy application process that can take weeks or even months to complete. On the other hand, hard money lenders can provide funding a couple of days after receiving an application.
Another benefit hard money lending has over traditional borrowing methods is it places more weight on the value of a property used as collateral. This is especially helpful for those who need cash but can't turn to banks due to poor credit history.
What are the Requirements for Hard Money Loans
Aside from purchasing investment properties, hard money loans are also often utilized to fund the renovations of real estate assets. Investors can use them to take advantage of opportunities that may not otherwise be available. So what are the requirements hard money lenders in San Antonio ask for?
The requirements vary depending on the specific loan program, but generally, lenders will look into the following factors:
- Property Value: To secure the loan, the borrower must have some form of collateral, which can be real estate or another valuable asset. Therefore, the property is the most important consideration for lenders when approving a loan. Lenders consider several elements, including the property's location, condition and potential for appreciation.
- Downpayment: How much money the borrower gives as a down payment is another crucial consideration in hard money lending. Generally, loanees can expect to put down at least 10% to 20% of the property's value. However, in some cases, lenders may require a higher down payment if the asset is considered high-risk.
- Financial Stability: While credit scores are not always significant, lenders still need to determine if the borrower can repay the loan. This may include reviewing income statements and tax returns to assess the loanee's financial stability.
Is a Hard Money Loan Right for You?
When considering a hard money loan, weighing the pros and cons is essential to determine if it's the right option for your situation. Hard money loans often come with higher interest rates and fees than traditional loans, so you must have a solid plan for repaying what you borrowed before moving forward. Otherwise, the lender may foreclose the property you used as collateral.
Still, hard money loans are a better choice for individuals looking for quick access to funds. Since they are privately funded, hard money lenders in San Antonio are more flexible in their lending criteria which is especially beneficial for investors who may not have perfect credit or need to move quickly on a property purchase.
San Antonio Hard Money Loans from Longhorn Investments
Longhorn Investments is on call, ready to ensure you obtain the funding you need whether you are flipping or renting in the San Antonio area. Our hard money lending product makes it possible for investors to maximize real estate investment opportunities in today's growing San Antonio market. The lending solutions and assistance we provide our San Antonio buyers include the following:
Up to 75% ARV (excluding points and fees)
Finance up to 100% of Cost
Close in 3-5 Business Days
No W-2's, Tax Returns, or Pay Stubs Required
First Time Investors Encouraged
San Antonio Hard Money Client Testimonials
“Just did a hard money loan with Longhorn. They helped walk me through the steps and made sure I understood the process. This is my first loan and I plan to use them again. HIGHLY RECOMMENDED!”
“Thank you so much for all the work and support you gave us through our house purchase/renovation processes. It really helps things go smoothly when you have a good team on your side.”