Aspen Hill is a Washington D.C. suburb in Montgomery County, right outside Rockville. It is home to many young professionals and families, and many people who live in Aspen Hill work in the Washington D.C. area. With just over 50,000 people living in Aspen Hill, the city is known for the aspen trees popular in the area.
In January 2022, the average listing age for a home in Aspen Hill was 42 days. 66% of adults own their home in the city and 34% rent their homes. Aspen Hill is a very nice suburb with a tremendous amount of green space, and the real estate market, like many places in Montgomery County, is very competitve.
Hard money loans might be the best way to invest in real estate in Aspen Hill. They are otherwise known as bridge loans or last resort loans, and they are usually used for real estate transactions. In particular, hard money loans are used to fund long-term rentals, fix and flips, construction properties, and repairs for foreclosed and distressed properties.
They can bypass low credit scores because they use the value of the property as collateral rather than borrowing history. While most hard money loans still have a minimum credit score requirement of 600 to 620, rates are still based on the property. If a borrower defaults on a hard money loan, the lender takes on the property. This means lenders have to determine whether the property can pay off the loan.
Hard money loans, because of this risk to lenders, have high interest rates (usually of 8–15%), low LTV ratios, and short repayment periods. They have to be repaid quickly and cover less of the financing of a home, resulting in higher down payments than traditional mortgages.
In very competitive real estate markets, hard money loans are particularly advantageous because they can be approved quickly. Since they don’t require as much documentation as traditional loans, some hard money lenders can approve loans within a couple of days, giving the borrower leverage in real estate transactions, especially in a place like Aspen Hill.
However, it’s important not to trust any hard money lender. Some hard money lenders may tack on extra fees, and although every hard money lender has some fees like underwriting fees, others might not be transparent or communicate about extra closing costs or origination fees.
Thus, it’s important to find a hard money lender you can trust. Here at Hard Money Lenders IO, we have you covered. We have compiled a list of the best hard money lenders in Aspen Hill and the surrounding area for you to secure the best deal possible and be a competitive investor in a competitive market.