Hard Money Loans in Youngsville, Louisiana
Updated: May 4
Hard Money Loans has been an incredible short-term solution for several investors in Louisiana. Many investors or rather those planning to invest here either don’t qualify for traditional loans or just desire to close a transaction fast. Most hard money loans in Louisiana are offered for less than a year, but some hard money lenders also provide loans on a longer-term basis.
If you are in the real estate industry here, you can access a private hard money loan for business refinance, equity cash out, rehabilitation, or new construction purchase. However, there must be a guarantee that you are capable of paying back the money within the period agreed.
A hard money loan is a unique type of loan in which funds are secured by real property instead of the borrower's creditworthiness. Similar to a short-term bridge loan, hard money loans are primarily used in real estate transactions when the lender is an individual or company, as banks do not offer them.
As for down payment, 20 percent to 30 percent of the loan amount is required. However, some hard money providers may require 10 percent down payment if you are an experienced house flipper. Most hard money lenders follow a lower loan-to-value (LTV) ratio, which is 60 percent to 80 percent.
Does a hard money loan require an appraisal?
Hard money loans for real estate usually don't require a full appraisal by a certified appraising company the way mortgages do, but that is an option in most cases if it's the valuation you are most comfortable with. It can take longer to get approval when you wait for traditional appraisal services.
Is it easy to get a hard money loan?
Despite the name, hard money can be easy to get — if you can make a big down payment and stomach higher interest rates and fees, that is. If you have a need for mortgage speed, a hard money lender may be the answer, as long you understand the terms of the loan and know what to look for in the fine print.
Are Hard Money Loans legal?
In short, yes, hard money loans are legal. ... Like any lender, there are restrictions on the type of deal a hard money lender is interested in funding and it's important to know what types of loans a hard money lender won't fund.
Can you get a loan for land and construction?
A land and construction loan is a specially designed product offering progressive payments in line with different stages of construction. Interest is generally charged only on the amount drawn down, which means you are only paying interest on the part of the loan you are actually using. ... Purchasing the land.
What are builders loans?
A construction loan (also known as a “self-build loan") is a short-term loan used to finance the building of a home or another real estate project. The builder or home buyer takes out a construction loan to cover the costs of the project before obtaining long-term funding.
Do banks offer hard money loans? No. Traditional financial institutions like banks and credit unions do not offer hard money lending. Hard money loans come from private lenders and individual investors.