Finally, you’ve located the ideal rental property to hold as an investment. You found a great bargain on the house, signed the contract, and asked us, Tidal Finance, to provide a hard money loan for the renovations. We were able to get quick financing, finalize the sale with no money down, pay off all construction drawings, and have the building leased at above-market rates. We’re just missing one little piece for everything to be complete. The short-term hard money loan must be refinanced into a longer-term loan. It’s crucial for real estate investors to take this action, since the increased interest rate on the bridge loan will reduce the property’s income. Conventional mortgage rates are often cheaper than those for other types of loans. See how Tidal Loans may help you with your hard money loan refinancing needs below!
We sit down with you for free to talk about your goals for the property. Do you want a loan to make repairs and sell the house quickly for a profit, or a loan to permanently settle into the home so that you may collect rent indefinitely? If it’s the latter, we’ll make sure you’re pre-qualified for a traditional loan by asking a few extra questions up front. Don’t want to get caught with the short-term loan. Even if your credit is less than perfect, our loan professionals will help you through the procedure step-by-step. Even if you have low credit, our loan officer can help you secure a hard money loan and then refinance into a temp-to-perm loan.
After you’ve been approved for a hard money loan and it’s been financed, you’ll need to find a tenant for the property before you can arrange a second closing to pay off the hard money loan and apply the conventional loan. The title business is responsible for processing the necessary documentation, including obtaining payment documents from the lender. The traditional loan closes, you begin making your mortgage payments to the new lender, and you move on to the next opportunity.
What are the advantages of a Temporary to Permanent loan?
One, not putting down the customary 20% that is required by most conventional lenders. Saving more of your hard-earned money.
Renting out a house purchased off-market in a hot real estate market 2. Offering money instead of other considerations may help seal the sale.
3. Loans for People with Poor Credit. A traditional loan may be out of reach if your credit or finances aren’t sufficient.
We are in need of a 100 percent hard money loan. If the buyer is a good risk, we will provide financing with no down payment required.