Phone: 240-436-2340
Maryland Hard Money Lenders. Private Loans in Maryland, Virginia & Washington, DC
The majority of hard money lenders do require some down payment. How much you need to put down on a hard money loan depends on three factors:
1. The price of a property you are purchasing.
2. The costs of the renovations you are planning to do.
3. The underwriting requirements of a hard money lender you
are working with.
If you are a real estate investor looking to finance your next property using a hard money loan, you are likely to have some questions. You probably know that hard money lenders work differently from traditional lenders in many key areas. But how do they look at credit? Can you qualify for a hard money loan if you’ve had some lates in the past? Alternatively, would your application be considered more favorably if you have a high credit score?
As our country navigates this health crisis, New Funding Resources is operating normally and is implementing measures to prevent any potential disruption to you, our valued clients. We continue to service our loans and monitor construction projects as normal.
The average interest rates on a hard money loan vary from private lender to private lender but generally are between 9% and 14% annually. If it sounds high for you, keep one important thing in mind: hard money lenders fund the type of loans that conventional lenders (such as your bank or credit union) will not touch with a ten-foot pole, no matter how much you are willing to pay them. The truth is that the average interest rate on a hard money loan reflects the high risk that a private lender takes by financing the transaction.
As I write this blog, a new year has started. January is the time to reflect on the past and what we accomplished during the last twelve months. It’s also the time to start planning for the future. 2020 is bound to be an eventful year. A lot of things are up in the air. Congress is impeaching the President. We’re in trade wars with China and others. The Presidential election is upon us and, whatever side you’re on, you must agree that it’s not going to be a smooth and orderly process. We can’t predict the future, but based on my recent conversations with our clients, many are looking at 2020 with an increased sense of trepidation. They are worried about the impact of the upcoming Presidential Elections on the economy and the real estate market in particular.
In 2018 and 2019, we saw an increased number of transactions where our hard money loans were used to rehab and keep a home as a rental – as opposed to selling it right after the renovation is completed. Yes, we are talking about good ol’ buy-and-hold versus fix-and-flip. In 2020, I expect this trend to continue. If you’ve been previously focusing solely on flipping properties, now it’s time to consider the benefit of long-term investing.
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New Funding Resources, LLC
806 West Diamond Ave.
Suite 340
Gaithersburg, Maryland 20878
Phone: 240-436-2340
All loans subject to our review of underwriting criteria and conditions. We reserve the right to approve or deny any loan application based on our sole discretion.
New Funding Resources 