Hard Money Lenders Baltimore: Fast Funding for Investors
Planning to invest in Baltimore’s opportunity-rich real estate market? Whether you’re flipping a historic property in Mount Vernon or securing a rental in Canton, hard money lenders in Baltimore provide the fast funding necessary to keep your projects moving forward. A hard money loan is ideal for those who need quick access to cash, regardless of credit history or traditional lending hurdles.
If you’re not an investor but need to bridge the gap between buying and selling your home, we’ll share some alternatives that might suit your needs. This guide will cover the basics of hard money lending in Baltimore, helping you make informed decisions about whether this financing option suits your investment or home-buying plans.
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 providing short-term loans secured by real estate. Unlike traditional banks, hard money lenders in Baltimore focus on the property’s value rather than the borrower’s credit score or income. Their clients often include house flippers and those purchasing rental properties who need quick, flexible funding options.
Hard money lenders determine loan amounts based on a property’s after-repair value (ARV), which is the estimated worth of the property after all renovations are completed. Typically, lenders offer a percentage of the ARV to ensure the security of their investment.
These loans come with higher interest rates, usually between 8% to 15%, and shorter terms, often 6 to 24 months. Additional costs include origination fees, closing costs, and points. Failure to repay can lead to the lender taking possession of the property to recover their investment.
How does a hard money loan work?
Baltimore real estate investors in need of fast and flexible financing may want to consider hard money loans. These loans offer certain advantages, which we’ll outline below, along with how they function.
