Hard Money Loan Requirements in Phoenix


Choosing the right location for your real estate property investment is probably one of the most important decisions to make. Whether you want to buy a home for yourself or invest in a property, choosing the right location is of paramount importance.

Your financing requirements will also largely depend on the property’s location, so a basic understanding of different locations is also essential. Phoenix is home to miles and miles of natural beauty, offering the perfect blend of urban and rural landscapes. 

Arizona, one of the fastest-growing states in the United States, is one of the prime real estate investment places. Whether you want to acquire commercial buildings and start building your investment portfolio or want to find a home to live in – Phoenix has a lot to offer.

In this blog, we will walk you over Phoenix’s hard money loan requirements and how you can get the best loan. 

How are Phoenix hard money loans structured? 

Phoenix hard money loans are typically structured with short-term agreements ranging anywhere between 1 to 3 years, offering financing for as little as $20,000 to as much as $5,000,000.

The specific terms and conditions might vary from one private lender to another, but a typical Phoenix hard money loan would require no minimum credit score and no hidden costs like legal fees. Loan origination fees might be anywhere between 1.5 % to 2%, and the fixed interest rates are generally seen starting at 8%.

They might go high based on your financial history, credit score, nature of the property, and so on. So with Phoenix hard money loans, you don’t have to wait for a traditional lender to fund your loan and shackle yourself with a ten-year payment agreement. 

Hard money loans are all about fast funding, fast closing, and getting the most out of both immediate financing and closing deals in a short period – and this applies to Phoenix hard money loans as well. 

What are the types of properties you can fund by using Phoenix hard money loans? 

Phoenix hard money lenders offer financing solutions for a wide variety of properties across the city. This range grows even more, when commercial purposes are where the property is a non-owner-occupied business-related establishment.

Here are some kinds of properties which are eligible and are generally funded by Phoenix hard money lenders. 

  1. Commercial Properties

Phoenix hard money lenders fund properties under commercial properties that fall in industrial zone areas, including warehouses, manufacturing factories, distribution centers, and storage facilities. The second kind is the typical office properties, including executive suites, business houses, retail officers, and medical offices. The third kind includes hospitality centers like restaurants, beds, breakfasts, motels, hotels, etc.

And the last widely growing commercial property type that Phoenix hard money lenders fund is multi-family units which include planned communities and complexes. 

One of the fastest and widely growing types of commercial properties spreading across Phoenix is the multi-family units and the warehousing and manufacturing factories in a post covid world, where most people want to go into multi-family units.

The majority of e-commerce stores wish to utilize a warehousing and distribution center to manage their deliveries and maintain their stock. Hence, if you are looking at investing in a property that is going to be highly lucrative in the coming few years – then undoubtedly, your best option would be warehouses and manufacturing facilities along with multi-family properties. 

  1. Residential properties 

The following properties are residential properties, including apartments and condominiums, single-family units, duplexes, triplexes, and quadruplex residences. The typical fix and flip properties, including remodels, renovations, and holes, also come under this fast-growing category. Of these, the fix and flip properties are known to provide significant results in terms of ROI to real estate investors. 

What are the requirements that need to be fulfilled to qualify for Phoenix hard money loans? 

Unlike conventional mortgages, private money lenders are pretty flexible in terms of their loan qualifying requirements. It goes unsaid that Phoenix hard money lenders are not looking for a specific set of criteria that needs to be met by their borrowers.

A good credit score will improve the chance of getting a loan approved. However, that does not mean saying that a bad credit score will come in the way of a borrower in getting the loan they need.

One of the most significant advantages of hard money loans is their flexibility and the opportunity it provides, especially to those who do not have a stellar credit score or have irregular income flow patterns like in self-employed borrowers.

Hard money lenders in Phoenix are less concerned about your credit score and are more interested in understanding the equity you have in your property.

As long as you can convince your lender about your loan repayment capacity, along with the projected income and expenditure statement for the next year, the chances are that you will find a lender who will fund your loan. 

Private capital investors have provided hard money loans to borrowers in Phoenix for many years now. Our expertise in understanding the real estate market in Phoenix is invaluable.

We focus on providing the best terms and conditions to our borrowers and providing the best consultation on choosing the right kind of properties to invest in, which can provide lucrative returns in the long run.

Talk to one of our experts if you are in a dilemma on how to go about your Phoenix hard money loan, and we would be happy to help you. 

Want to learn more? Get in touch with us today.

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