Hard Money Lenders Tampa: Flexible Financing Solutions
Are you planning your next real estate project in Tampa and considering a hard money loan? Whether you’re looking to flip a two-bedroom bungalow in Seminole Heights or purchase a prime rental property in Hyde Park, hard money lenders in Tampa offer the flexibility and fast funding you need. These loans provide a valuable alternative to traditional financing, especially for those with tight project timelines, limited upfront capital, or credit challenges.
For homeowners looking to buy before selling their current home, we’ll also explore some options to help leverage your home’s equity. This article outlines the key aspects of hard money lending in Tampa, helping you decide if it aligns with your real estate investment or home-buying goals.
Editor’s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to consult your own advisor.
What is a hard money lender?
A hard money lender is a private company or individual that provides short-term, real estate-secured loans. Unlike traditional lenders that focus on credit scores and income, hard money lenders prioritize the value of the property being used as collateral.
These lenders cater primarily to house flippers and buyers of rental properties who need rapid funding and flexible terms. Hard money lenders use after-repair value (ARV) — the estimated value of a property after renovations — to determine loan amounts. Typically, they offer a percentage of the ARV to ensure both profitability and security for their investment.
Interest rates for hard money loans range from 8% to 15% or more, with additional fees such as origination fees, closing costs, and points. If a borrower fails to repay, the lender can seize the property to recover their investment.
How does a hard money loan work?
If you’re a real estate investor in Tampa seeking quick and flexible financing, a hard money loan might be just what you need. Here’s a brief overview of how they work:
