Friday, January 18, 2019

Arizona Hard Money Loans in a Nutshell

Not every consumer understands Arizona Hard Money Loans or how they can benefit from them. But a small amount of information can explain the benefits and how to use them.

When you are denied for a traditional loan from a bank or other lender, it can be very frustrating and it can feel like your dream of owning a property has come to an end. But there is an alternative type of loan that is very helpful for many borrowers. Arizona Hard Money Loans are short-term loans which are funded by private lenders. Normally the loan term is around a year but the loans can be as short as a few months or extend up to around the five-year point. The loan terms will outline the payment schedule but in most cases, a monthly payment will be due.

The amount of the loan is based primarily on the value of the property that is being purchased. This is called asset-based lending and means that the property, the asset, is being used as collateral for the loan. The reason that this is beneficial to the borrower is that his or her credit score is not the primary concern when the lender is evaluating the loan application. So borrowers who have a credit score too low to qualify for a traditional loan can still qualify for hard money.

As an asset-based loan, the lender is far less interested in the borrower’s personal credit, payment history, and overall creditworthiness. This means that there are far fewer documents required when submitting a loan application for hard money loans. In most cases, the lender will request a few months of bank statements as well as proof of income to verify that the borrower has the income and capability to make the loan payments.

Less Time Involved

With fewer documents required for the loan application, borrowers will be able to quickly prepare their documents and in return, the lender will be able to very quickly review the documents. In some cases, a traditional loan application can linger for months before being approved or denied while hard money can be approved in just a few days in some cases and almost always in less than two weeks. So for borrowers who need money quickly, Arizona Hard Money Loans are a great option.

Legal and Legit

Even though hard money is considered a non-traditional type of loan, it does not mean that the loan is not legal and legitimate. It also is no indication that the loan can be allowed to go unpaid as the loan documents are as legal and binding as any loan from a bank or a mortgage company. Hard money is just a different type of loan from a different type of lender which is used to meet a unique need for some borrowers. Understanding the terms of your loan agreement is always important and hard money is no exception. Be certain to read the entire loan document and seek legal advice if there is any aspect of the agreement that you do not understand before signing it.



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO


NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701  

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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