Hard Money Lenders Peoria, AZ

Peoria Hard Money Lenders

Real estate investors trust Source Capital as a premier hard money lender in Peoria, Arizona. With over a decade of experience, we’ve grown to become the industry-leading hard money lender in Arizona and beyond. With a proven track record of success, Source Capital has funded over $400 million in residential and commercial real estate loans across the United States to help buyers, brokers, and agents secure real estate property. Learn what Source Capital has to offer and why hundreds of satisfied clients gave us their votes of confidence.

What is a Source Capital Hard Money Loan?

When it comes to purchasing real estate, there are several different financing options. Let’s take a look at some of the most common ways buyers choose to finance, and how a hard money loan in Peoria would compare:

• Home Builder Financing

This financing option is for people who plan to build a home from the ground up. These mortgages are usually approved based on a set of conditions at the time of your application, and unless the home is built quickly, any change in financial status or the lender’s underwriting guidelines could impact the terms of your loan.

• FHA Mortgage

An FHA loan is a mortgage insured by the Federal Housing Administration. FHA mortgages have less rigorous lending standards and relatively low down payment requirements. However, the terms of the loan are usually upwards of 30 years, and they require borrowers to pay for mortgage insurance.

• Bank and Credit Union Mortgages

Mortgages from banks and credit unions are not government-backed, and the terms of your loan will vary depending on the lender and your credit profile. You can expect a required down payment of at least 20% for a mortgage from a bank or credit union.

• Private Lenders

When you finance using a hard money loan from a private lender, you’re borrowing from another person or business versus a bank. Because the funds come from a direct source, the loan is distributed much more quickly than conventional mortgages.

Why Choose Peoria Hard Money Loans by Source Capital?

There are several distinct disadvantages to conventional mortgages, which makes securing a hard money loan in Peoria a more appealing option for many lenders. For starters, an adjustable rate mortgage (ARM) has an interest rate that changes periodically, and can fluctuate every year. The interest rate will adjust according to the market value, which might imply sudden and unexpected changes in the terms of your loan. What’s more, borrowers are locked into these loans and subject to fluctuations for decades. It is possible to find a fixed-rate FHA loan, but borrowers are still required to pay an annual premium in monthly increments. As opposed to upfront premiums—the mortgage insurance paid when receiving the loan, 1.75 percent of the value—annual premiums vary based on the length of the loan, the amount, and the initial loan-to-value ratio (LTV). Such lengthy and unstable loans with added fees are often unattractive to borrowers, and many real estate investors in Peoria choose direct lending instead.

Whereas mortgage companies require an extensive amount of time, cost, and paperwork to underwrite a loan, hard money loans in Peoria are underwritten in-house. This cuts out the middle man and the pre-approval process, resulting in faster loan distribution. The hard cash is pulled from a direct source—not a circulating pool of money from a bank—and can be dispersed in a matter of days versus weeks. Buyers who need to act fast on a Peoria property might opt for quick and convenient hard money loan over a time-consuming mortgage.

Finally, hard money loans are the preferred financing option for Peoria fix-and-flip properties. Investors, house flippers and real estate developers whose goal is to renovate a property and then sell it for profit strategically use hard money loans as a financing tool. They frequently lack the funds necessary to purchase a property outright and pay for the renovations in cash, and therefore turn to the efficiency of direct lending. The speed with which we can release the funds allows buyers to close quickly on a hot home, and our short terms mean they won’t be stuck paying off their project long after it’s complete.

In sum, our Peoria hard money loans include:

• A direct lender
• Fast approval and funding
• Minimal paperwork
• No prepayment penalties or bogus fees

Who Qualifies for a Hard Money Loan in Peoria?

Direct lending in Peoria is much easier to qualify for than traditional mortgages. Our private loans are secured by the value of the property, not the trustworthiness of the borrower. Whereas banks and mortgage companies look at the financial status and credit score of an applicant, Source Capital loans are underwritten based on the value of the asset itself. We’re therefore able to lend to foreign nationals who have not had the opportunity to establish credit, as well as individuals who may have a financial blemish in their past.

Source Capital qualifications for Peoria hard money loans:

• No minimum income requirements
• No minimum FICO scores
• Past bankruptcy—OK
• Past foreclosure—OK

How to Apply for Source Capital Hard Money Loans in Peoria?

The application process for hard money loans in Peoria is simple. Our online form takes only 10 minutes to fill out and you’ll be on your way to getting the answers you need. After we receive a receipt of your loan application, we’ll contact you within 24 hours and provide you with our written offer. All of our terms will be fully disclosed so you can feel confident moving forward with your loan. If you accept our offer, we’ll then fund your loan through escrow in a matter of days, not weeks. Your hard money will be wired to you directly in Peoria, allowing to secure your residential or commercial real estate property. After that, you’ll begin making monthly payments on your loan’s balance. Pay in whichever method is most convenient to you—via mail, phone or direct deposit. You can also apply for a Peoria private lending loan by emailing us or calling us directly. Sometimes we find that it’s easier to talk with you through your loan scenario in case any questions come up; that way, you’ll be able to know in a matter of minutes whether Source Capital can help you actualize your real estate goals. Your call is free and your quote is free, so what do you have to lose?

Source Capital’s general terms and conditions for direct lending in Peoria include:

• Fixed interest rates starting at 8.99%
• LTV up to 65%
• Terms up to 36 months
• Origination fees from 1.75%

Why Choose Source Capital for Peoria Hard Money Loans?

If you’ve decided direct lending in Peoria is the right solution for your real estate financing, choose to borrow from Source Capital. We’re both state and federally licensed, and proud to boast an A+ rating with the Better Business Bureau. Other private lenders are notorious for taking advantage of their clients, but we pride ourselves on transparency. You’ll always be well-informed regarding the status, terms and conditions of your loans. If there’s something you don’t understand, or any source of confusion, simply ask. We promise to diligently walk you through each of your questions until you feel confident about the structure of your loan. Our clients love our commitment to transparency and continue to refer us to friends and family members for trusted hard money loans in Peoria. Their testimonials speak to our success, as does our 5-Star rating on both Yelp and Google. We take care of our clients and it shows. See why borrowers across Arizona, California, and Minnesota choose Source Capital above the rest for reliable and fair hard money loans. Contact us today and begin turning your real estate dreams into a reality.