Hard Money Lenders in Georgia: Flexible Loan Solutions
Are you looking to finance your next real estate project in Georgia with a hard money loan? Whether you’re eyeing a fixer-upper in Savannah’s historic district or aiming to purchase a rental in Midtown Atlanta, hard money lenders in Georgia offer a flexible and speedy alternative to traditional financing. These loans are particularly useful for those with tight timelines, limited initial funds, or credit challenges.
We’ll also explore alternative financing options for Georgia homeowners seeking to bridge the gap between buying and selling a home. This article will walk you through the essentials of hard money lending in Georgia, helping you determine if this financial strategy 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 individual or company that provides short-term loans secured by real estate. These lenders prioritize the property’s value over the borrower’s credit score and income, making them a popular choice among real estate investors such as house flippers and those acquiring rental properties.
Hard money lenders determine loan amounts using the after-repair value (ARV), which is the estimated value of the property after all renovations are completed. They usually lend a percentage of this ARV to protect their investment.
Interest rates for hard money loans are higher, typically between 8% and 15%, and repayment periods range from 6 to 24 months. Borrowers can expect to pay additional fees, including origination fees, closing costs, and points. If a borrower fails to repay a hard money loan, the lender can seize the property to recover the funds.
How does a hard money loan work?
For real estate investors in Georgia needing fast and flexible financing, hard money loans may be the answer. Here’s a breakdown of how these loans work:
