What You Need To Know About Arizona Hard Money Loans?

As a real estate investor, you have plenty of choices when it comes to getting a loan

. And one alternative you may want to consider is to use Arizona hard money loans. However, if you have never dealt with Arizona hard money lenders before, then you may not know what to expect. Read on to find out what you need to know about Arizona hard money loans.

Tip #1: Arizona hard money loans are asset-based loans. Traditional lending institutions tend to look at your credit worthiness as the primary factor in deciding whether you are eligible for financing. That is not the case when it comes to Arizona hard money lenders. That is because hard money loans in Arizona are based on the asset that you are investing in, which is why Arizona hard money lenders need to inspect the property before they approve your loan.

Now, because the Arizona hard money lenders are taking on a big risk when they approve these types of loans, the interest rates do tend to be higher than traditional mortgages. But if you can not qualify for traditional loans, or if you just prefer the flexibility of Arizona hard money loans, then it was worth it.

Tip #2: Arizona hard money loans have lower loan-to-value ratios. If you were getting a traditional loan, you might be able to get a loan with a loan-to-value ratio close to 90%. For example, if a property is valued at $100,000 and you were approved for a loan for $87,000, then the loan-to-value ratio is 87%.

As you might expect, high loan-to-value ratios are more risky. That is why Arizona hard money lenders - who are already taking on fairly risky loans - tend to offer lower loan-to-value ratios. Generally, you will be able to finance around 65% of the value of the property.

Tip #2: Arizona hard money loans are for professional real estate investors. Arizona hard money lenders simply do not lend money to private homeowners. That is because Arizona hard money loans are best suited for real estate professionals who need quick approval for short-term financing.

If you are a professional real estate investor, then you have probably already been researching about Arizona hard money lenders. The good news is that your research is done: just go to Arizona Funding Group to start the application process for your Arizona hard money loans - you will be glad you did!

by: Jesenia Crista

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