Hard Money Lenders NY: Quick, Flexible Loans
Looking for a way to fund your next real estate project in the State of New York? Whether it’s renovating a historic property in Saratoga Springs or expanding your investment portfolio in Binghamton, hard money lenders in NY offer the financial flexibility you need. Hard money loans provide a quick funding solution based on the property’s value rather than your credit score or income history.
If you’re not a real estate investor but need to bridge the timing gap between buying and selling a home, we’ll explore alternative options that allow you to leverage your home equity. This article will guide you through the essentials of hard money lending in NY, helping you determine if this type of loan suits your real estate needs.
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. Unlike traditional banks, hard money lenders in NY focus on the property’s value rather than the borrower’s credit history. They often work with house flippers and investors purchasing rental properties who need quick, flexible funding.
Hard money lenders determine loan amounts based on the after-repair value (ARV), which is the estimated value of a property after renovations are complete. Typically, they lend a percentage of the ARV to ensure the investment is profitable and to reduce risk.
These loans come with higher interest rates, usually between 8% and 15%, and additional fees like origination fees, closing costs, and points. Failure to repay a hard money loan can result in the lender foreclosing on the property to recoup their funds.
How does a hard money loan work?
For New York real estate investors looking for speed and flexibility, hard money loans are an enticing option. Here’s a brief overview of how they work:
