Ashburn is a town located in Loudoun County, Virginia, about 30 miles northwest of Washington D.C. Ashburn is part of the D.C. metropolitan area and is known for having multiple data centers for Internet carriers. Ashburn has a population just over 43,000 people, and is known as the “bullseye of America’s Internet.” It is also home to many major data centers for Equinox and Amazon Web Services, and it’s also a home to a Verizon Business office. There are campuses for both George Washington University and Strayer University in the area.
According to Niche, Ashburn is known as a suburb of Washington D.C., and is known as one of the best places to live in Virginia. It gives residents a dense suburban feel, and almost 80% of people who live in Ashburn own their homes. Ashburn is also known for being a great place to raise a family with terrific public schools. It is home to many families and young professionals, and it also has a thriving night life scene through many restaurants and parks. Right now, Ashburn has a median home value of $493,400 and a median rent of $1,897.
Ashburn is currently a seller’s market. It is a place where demand is outpacing supply, and where real estate investors are getting into bidding wars over the best real estate in the state. Homes are selling fast and for faster than listing price in Ashburn.
Real estate investors in the area should look into hard money loans. Hard money loans are also known as short-term bridge loans and last resort loans, but they’re mostly used for real estate transactions. Hard money loans have a huge advantage in seller’s markets like Ashburn: they can be approved very quickly and give investors a competitive edge. While traditional mortgage loans take a month or more to be approved, hard money loans can be approved in a few days.
The reason hard money loans can be approved so quickly is because they’re based on the property, not the credit score of the borrower. Hard money loans still have minimum credit scores of 600 to 620, but they largely don’t base their terms and rates on the property. Hard money loans use the after repair value of the property to calculate rates and terms, which makes sense because hard money loans are normally used to repair homes in poor condition and make them attractive properties.
Instead, hard money loans use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a very lengthy foreclosure proceeding. However, if a borrower defaults on a hard money loan, the lender takes on the property in a very expedient process. Hard money lenders have to be prepared for this possibility when approving a loan, and usually see if they can make a profit off the proeprty.
This also means hard money loans come with lots of disadvantages. Hard money loans are known for having higher interest rates, lower repayment periods, and higher LTV ratios than traditional mortgage loans. Hard money loans have interest rates between 8–15%, which are significantly higher than the interest rates of traditional mortgage loans (just over 4%). They also need to be repaid in a very short amount of time, which is usually a year, whereas mortgages can be repaid in 15 to 30 years.
To get the best terms and rates, it’s essential to trust only the best hard money lenders. That’s why we at Hard Money Lenders IO have made a list of the best hard money lenders in Ashburn.