Surprise Hard Money Lenders
Source Capital is the premier hard money lender in Surprise, Arizona. If you’re planning on making a real estate investment and you need a fast source of funds, look no further than Source Capital. Surprise is one of the fastest growing cities in the greater Phoenix metropolitan area. With a steady increase in population over the last 20 years, there has never been a better time to invest in Surprise real estate. Don’t let a lack of funds prevent you from finding success in the Surprise real estate market. Source Capital Surprise hard money loans will help you achieve your property acquisition goals.
What is a Hard Money Loan?
When it comes to investing in real estate, few investors have the upfront capital they need to purchase property or housing outright. In order to finance their real estate investments, home and property buyers will take out a loan. Here are some of the common loans used for real estate investments:
- Traditional Mortgages. Traditional mortgages are the most common loans for financing real estate. An ARM (adjusted rate mortgage), is a short-term loan with interest rates that fluctuate annually based off of the market. Fixed rate mortgages typically require a minimum down payment of anywhere from 5-30% and a minimum credit score of 700. Mortgages are typically given by banks and credit unions.
- Home Equity Loan. If you already own a home, you can use its equity as collateral for your loan. The amount attached to these loans is determined by the value of the property that is used for collateral. An appraiser from a lending institution will determine the value of the property before an offer is made. A home equity loan actually creates a lien against the borrower’s house and reduces its equity. Home equity loans are also known as second mortgages, notorious for keeping homeowners in a repeated debt cycle.
- FHA Conventional Loans. FHA stands for Federal Housing Administration. These loans are backed by the government, as opposed to traditional mortgages that rely on insurance. These loans exist for low to moderate income borrowers who can’t afford substantial down payments. Depending on your credit score, a down payment of 3.5-10% is required.
- Hard Money Loans. Hard money loans are based on property value rather than an amount determined by a credit score. Also known as direct loans, hard money loans are given by private investors and lending companies. This is the only kind of loan that will allow you to borrow up to 100% of the value of the property you wish to purchase. These kinds of loans tend to have slightly higher interest rate, but they come with a fixed rate and can be paid off in 1-2 years.
What Can Hard Money Loans Be Used for?
Commercial Real Estate: The commercial real estate business is lucrative and exciting to get involved in. Commercial real estate property is used solely for non-residential purposes, such as office buildings or warehouses. The profit margins for commercial real estate can be significantly higher than residential if bought and managed properly; however, the start-up investment costs tend to be much higher. Here are types of commercial real estate investments that can be made with Surprise hard money loans:
- Multi-family units (apartment buildings, complexes, planned communities)
- Retail (strip centers, malls)
- Industrial spaces
- Hospitality locations (hotels, restaurants)
Residential Real Estate: A Surprise hard money loan is a great way to get your residential real estate dreams off the ground. Whether you need a loan for a new home or a rental property, Source Capital can assist in bringing your residential real estate goals to their fruition. Here are some of the different residential real estate investments you can make with a Surprise hard money loan:
- Single-family homes (suburban development)
- Duplex, triplex, or quadruplex
- Fix and flip houses and estates
Why Should I Use a Surprise Hard Money Lender?
Imagine there is an incredible fixer-upper that the bank has just foreclosed on and it’s about to go up for sale. The problem? You don’t have the immediate funds to purchase the home from the bank. You need the funds to get this house quickly before someone else can close a deal.
With Source Capital hard money lenders, you can get the money you need in a matter of days. This is just one reason why you might need to take out a direct loan, but there are other reasons and situations in which this type of loan might apply:
- Stronger Offer: If a seller is presented with two different offers, one backed by a mortgage and one backed by a hard money lender, the seller is going to choose the offer that’s backed by hard money. The reason being is that banks will sometimes pull funding during escrow, potentially killing the deal. Cash is always king when it comes to closing real estate deals.
- Negotiations: Closing a sale with little to no complications makes for great leverage in a negotiation. A cash offer is sure to speed up the process and motivate the seller to come down on the price.
- Credit and Income History: There is no minimum FICO score and your income won’t have the same importance as it does with a traditional mortgage application. If you have bad credit, getting a hard money loan can be a viable option to finance your real estate project.
- Avoiding the Bank: If you have been turned down for a mortgage at the bank, a hard money loan can be a great alternative. Even if you can get approval for a mortgage, the process can take weeks or even months to come through. If time is a concern, avoiding the bank altogether is your best option.
Why Should I Choose Source Capital?
With over a decade of experience, Source Capital has established itself as a premier lending company in Surprise. Our clients speak for us when it comes to dedication and satisfaction. See our 5-star reviews on Google and Yelp for yourself and find out why Source Capital has an A+ rating with the Better Business Bureau. Source Capital has approved over 380 loans and funded $252,750,000 to individuals and business all over California, Arizona, and Minnesota.
Do I Qualify for a Surprise Hard Money Loan?
Source Capital loans are asset-based, meaning you won’t be approved or denied based on your credit score. We focus on equity when it comes to assessing the qualifications of an individual seeking a hard money loan. You are much more likely to qualify for a hard money loan than a traditional mortgage. Here are some examples of what to expect from Source Capital’s qualification process:
- No minimum income requirement
- No minimum FICO score
- No asset requirement
- No discrimination for bankruptcy or foreclosure
What are the Terms and Conditions of a Source Capital Hard Money Loan?
If you plan on taking out a hard money loan in Surprise, AZ, you won’t find better terms with any other lenders. Our terms and conditions are laid out in plain writing so that anyone can read and understand them. You won’t be surprised by hidden fees or penalties when you choose Source Capital. We pride ourselves on our honesty and transparency—it’s one of the reasons we are Google’s number-one reviewed and rated hard money lender. Here are the terms you can expect from our hard money loans:
- Fixed interest rates starting as low as 7.99%
- Funding within 7 days
- No prepayment penalties
- Lender fees from 1.75 points
- Loans up to 70% LTV
- Terms up to 36 months
- Simple and easy monthly payments
Loans will vary based on the value of real estate to be purchased. If you have any questions about our initial offer, we are here to walk you through anything that isn’t clear.
How Can I Apply for a Surprise Source Capital Hard Money Loan?
The application process for a Source Capital hard money loan is incredibly easy. You can file your entire application online in under 10 minutes. Expect an initial offer within 24 hours and a complete list of terms and condition along with it. You can also give us a call directly for a convenient and speedy walk-through that will determine if you are qualified in a matter of minutes. Unlike other lenders, we can send your funds directly in a just a few days, rather than weeks. Our loans are funded through escrow and wired to your account directly. Once your loan is confirmed, setting up monthly payments is simple and easy. You can make payments with direct deposit or through the mail.
Contact Source Capital
Contact Source Capital via email, filing an online form, or calling us at 888.250.2943. Our staff is standing by to get your application process started and answer any questions you might have. Call us today and discover why Source Capital is the number one rated hard money lender in Surprise, AZ.