Can I get a hard money loan in Phoenix with low credit?

Source Capital has no minimum credit requirements to get approved for a hard money loan in Phoenix. Unlike conventional loans that comb through your credit report and financial history, we ignore imperfect financial pasts and focus on your property’s equity and other assets. This allows us to streamline the approval process and helps you secure the funding you need in a timely manner.

Our hard money lenders in Phoenix are ready to work with you to make your real estate dreams come true. Hard money loans, also referred to as private money loans, come with no junk fees and have fixed rates starting at 8.99%, much lower than Phoenix’s average hard money loan rate of 13%. With the median Phoenix home price averaging around $415,000, a lower interest rate means you’ll spend less money over the course of your real estate project.

What kind of properties can I get a loan for in Phoenix, AZ?

When it comes to investing in real estate, there are numerous routes you can take—residential, commercial, fix and flip. At Source Capital, we provide hard money loans for many types of real estate ventures. Some properties you can get a hard money loan for in Phoenix include:

• Residential Properties: Have your eye on the perfect single-family residence? Source Capital has you covered. We fund a variety of residential properties, including homes, condos, apartments, duplexes, triplexes, and quadruplexes. Whether you’re buying for yourself or with the mission of becoming a landlord, we’ve got the perfect hard money loan to get you where you want to go. 

• Commercial Properties: Don’t sit idly by while your dream commercial property gets snatched up by somebody else. Source Capital can help you secure funding for an office building, retail store, multi-family unit, storage building, hospitality structure, or industrial properties with one of our hard money loans.

• Fix and Flip Ventures: If you own a fix and flip business, a hard money loan can help you hold onto your property while you plan your remodel. Your hard money loan is financed for up to two years, so you have plenty of time to transform your property for profit.

Unlike banks and traditional lending institutions that might reject you for the type of property you want to buy, our team of private investors will work with you to get approved for a hard money loan that’s tailored to your goals.

What are the requirements for a hard money loan in Phoenix, AZ?

Getting approved for a Phoenix hard money loan is simple when you choose Source Capital. Skip waiting months for a traditional lender to go through your entire history in order to get approved. At Source Capital, all you need to do is fill out our online application form, or contact us via email or phone, and you’ll likely have a response within 24 hours.

Unlike other lenders, Source Capital doesn’t look at your credit score to determine your loan eligibility. Even if you have a low credit score or a less-than-ideal financial history, our Phoenix hard money lenders can work with you to help you secure a loan.

When you apply for a hard money loan in Phoenix, you’ll need to provide some basic information:

• Your first and last name
• A valid email address
• Your phone number
• The loan amount
• The purpose of the loan

Our requirements are minimal. All we ask is for a detailed overview of the property you’re buying and the intended purpose, and we’ll work with you to map out a plan to get you the financing you need. Once approved, you’ll have funds wired directly to your account within 7 to 10 days. This means you’ll have capital fast to put down an offer on your dream property, rather than watching competitors snatch up real estate before your eyes.

Why do buyers choose hard money loans?

If you’re new to the real estate market, you’ll soon realize that properties can be bought quickly. Many sellers want to sell quickly and receive money upfront. When working with an Arizona hard money lender, you’ll be able to access capital within a week of applying, meaning you’ll be able to negotiate and place an offer before your competition. Timeliness isn’t the only benefit of hard money loans. Other reasons why buyers choose hard money loans include:

• Minimal Requirements: As stated, we don’t ask much when it comes to approving you for a hard money loan. Instead of invasive credit card checks, background checks, minimum income, or a personal history review, we use assets or equity as collateral.

• Short-Term Agreements: For those pursuing fix and flip ventures, it can be hard to secure financing. This is because many fix and flip businesses only need financing for a short period of time, such as a year or two while they renovate. However, this goes against the business model of traditional banks that prefer 15-year agreements to make money from interest, which results in a denial of a loan. At Source Capital, we offer short-term hard money loans anywhere between one and two years.

• Additional Lending: Traditional banks and lending institutions might deny you from getting multiple loans and funding for your real estate investment. But at Source Capital, we are happy to provide additional funding—anywhere between $100,000 and $5 million.

Hard money loan terms and costs will vary from person to person. Our interest rates range from 8.99% to 13.99%, and origination fees—starting at 2%—can vary depending on the loan amount and duration. If you have questions about total loan costs or how we calculate interest rates, give us a call or contact us online.

Types of Loan Programs

When you choose Source Capital as your Phoenix hard money lender, you get access to various types of loan programs. We offer flexible loans with competitive terms that are designed to meet your needs—whether you’re an investor or you simply need access to capital. You can find more information about our Phoenix hard money loan programs below.

Refinance

Tapping into the equity in your home can help you quickly access capital, and a cash-out refinance from Source Capital is a simple solution. You can take out a loan based on the equity you have in your home, using that loan to pay off your existing mortgage and the additional funds for any other expenses or investments.

Investment purchase

Investing in real estate can be lucrative, but securing the funding you need to invest can be tough. At Source Capital, we offer hard money loans to help you get started on your journey as a real estate investor. Even if you can’t get approved for a conventional loan, we can help you secure the capital you need to invest.

Commercial property

At Source Capital, we offer hard money loans in Phoenix for several types of commercial property. You can use a commercial property loan from Source Capital to invest in a retail storefront, an office space, or even a multi-family property like a condominium.

Probate and estate

Are you receiving an inheritance but need access to your money in advance? With a probate and estate loan from Source Capital, you can quickly access capital from your inheritance so you can start investing as soon as possible.

How Our Loans Work

At Source Capital, our hard money lenders are committed to working with you to find a loan program that suits your needs. Unlike other lenders, we offer flexible private loans with competitive rates so you can find the right financing for your journey as an investor.

Conventional lenders might worry about your credit score and income, but we don’t. The lenders at Source Capital focus on the value of your assets, so you can get approved even if you have a less-than-ideal financial history.

One thing we use to determine your loan eligibility is your loan to value (LTV) ratio. First mortgages are available with an LVT up to 65%, with second mortgages up to 50% CLVT. Here’s how it works:

• For first mortgages, the loan amount can’t be more than 65% of the value of the property you’re purchasing. To calculate this, divide the loan amount by the property value.
• For second mortgages, you have to combine the value of all secured loans and compare them to the value of the property. The combined value of these loans can’t be more than 50% of the property value.

Our lender fees and interest rates vary based on the loan amount, loan duration, and other factors. You’ll get a chance to review your private loan terms before you agree to anything.

Popular Phoenix Areas

Phoenix might not be the largest or most populated city in the US, but there are several great areas for families and bachelors alike. Check out some of the hottest areas in Phoenix below.

Paradise Valley

For homebuyers and renters who prefer luxury over affordability, Paradise Valley is the neighborhood of choice. The average home price in Paradise Valley is more than $3 million, making it one of the more expensive parts of Arizona—but that high price comes with beautiful views and luxury living.

Chandler

The average home price in Chandler is slightly higher than the Phoenix average, but this is a great spot for people who enjoy a combination of city living and nature. With more than 60 parts and playgrounds, Chandler is an excellent area for families.

South Mountain Village

South Mountain Village is one of the most scenic neighborhoods in Phoenix—and it’s also extremely affordable. The average home price in South Mountain is around $363,000, and home prices have historically remained fairly stable. Beautiful views of the Phoenix skyline make South Mountain Village a desired part of Phoenix.

Deer Valley

Deer Valley is located in the northern part of Phoenix, giving you easy access to popular spots like Falcon Mountain, Dixie Mountain, and Sonoran Preserve Desert Vista Trailhead. This area is still evolving with each passing year, but affordability and easy access to outdoor recreation make it an increasingly popular destination.

Source Capital is your preferred lender

Source Capital’s Founding Partner, Sacha Ferrandi, grew up in Phoenix and graduated from Arizona State University, so we are more than familiar with the state of Arizona, and the visionary minds living within it. From Scottsdale to Peoria and Chandler to Tempe, Source Capital has funded hundreds of loans in Arizona, such as purchase loans, refinancing, cash-out and everything in between. 

Count on Source Capital for all of your Arizona hard money loans for commercial real estate, residential real estate, and fix and flip ventures. Call us at 888.249.9827 for hard money loans in  Arizona and get started on your real estate dreams today.