Are you curious about Idaho hard money lenders? As with every hard money lenders in the country, Idaho hard money is much more restrictive compared with soft money lent by traditional financial institutions. Hard money is not hard to obtain in Idaho but the terms are very specific since most hard money comes from private individuals and small corporations with a great deal of money on hand.
Hard money lenders in Idaho have varying terms, depending on the lender. Normally, Idaho hard money lenders would lend based solely upon the property at hand. Only a percentage of the fair market value of the property would be given to the borrower. In this manner, in case of default, the hard money lender would still profit big-time if they had to foreclose or sell the said property.
If you are dealing with Idaho hard money lenders, it is important to know the terms of the deal. Typically, lenders will only loan you up to 70% of the after repaired value (APV) of the property. This means that if you borrow from a hard money lender, you can loan up to 70% of the worth of the home in its repaired condition. So if you have a home that is worth $45000 in its current condition, needs $20000 for repair, and then reached $100000 in its current fair market value after the repair, hard money lenders can offer you up to $70000.
High interest rates are also very common in hard money lenders. Some figures say that interest rates can vary from 12% – 20% yearly, with the terms lasting for 1 day to a few years. These rates may also vary depending on the credit score of the borrower although this is not so much a big factor in getting approval for the loan.
Real estate investors are fond of seeking hard money lenders in Idaho and in every state because the funds are readily available compared with borrowing from banks and other financial institutions. Even you, when you find investment properties and do not readily have money, you need to move quickly, or else, the good investment opportunity might slip away. Thus, it is important to begin relationships with potential hard money finance lenders as quickly as possible.