Hard Money Lenders Pittsburgh: Quick Access to Capital
Are you eyeing a new real estate opportunity in Pittsburgh and considering a hard money loan to make it happen? Whether you’re planning to flip a historic row house in the Strip District or invest in a rental property in Squirrel Hill, Pittsburgh’s hard money lenders offer the flexibility and speed that traditional loans often lack. A hard money loan is a valuable alternative for those dealing with tight project timelines, limited upfront capital, or credit challenges.
Not just for seasoned real estate investors, hard money loans can also help homeowners bridge the gap when buying and selling homes. In this article, we’ll dive into the essentials of hard money lending in Pittsburgh, discuss how it works, what it costs, and explore alternatives for those looking to leverage their home’s equity. Discover if a hard money loan aligns with your real estate goals in the Steel City.
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 individual or company offering short-term, asset-based loans secured by real estate. Unlike traditional banks, which emphasize the borrower’s credit and income, hard money lenders in Pittsburgh focus on the property’s value. Their clients typically include house flippers and those purchasing rental properties, who need quick access to funds and flexible terms.
Hard money lenders use after-repair value (ARV) — the estimated value of a property post-renovation — to determine loan amounts, lending a percentage of the ARV to ensure profitability and security. Interest rates for hard money loans range from 8% to 15%, with repayment periods from 6 to 24 months. Additional costs can include 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 considering a real estate investment in Pittsburgh, it’s important to understand the ins and outs of hard money loans. These loans provide unique advantages for quick funding and flexible terms. Here’s an overview of how they typically work:
