Hampton is an independent city in Virginia with a population just over 137,000 people. It is the seventh biggest city in Virginia, and is one of the biggest cities in the southern Virginia area. Hampton and its surrounding area are known as “America’s First Region,” and is home to many beaches and waterfronts. Hampton is also home to Langley Air Force Base, the NASA Langley Research Center, and the Virginia Air and Space Center. It also has a very rich history of museums in Hampton University and other major institutions.
According to Niche, Hampton is a city that gives residents a dense suburban feel and is a place where most residents own their homes. There are many restaurants and parks in Hampton, and Hampton is also home to many families and young professionals. It has above-average public schools, and Hampton is well known for being a very diverse place with great nightlife.
Right now, Hampton is a seller’s market. It is a place where demand is rapidly outpacing supply, and where real estate investors are getting into bidding wars over the best real estate in the state.
Hard money loans might be the best way to invest in real estate in Hampton. Hard money loans are also known as short-term bridge loans and last resort loans, but they are very advantageous in a seller’s market like Hampton. Hard money loans can be approved in a couple of days, whereas traditional mortgage loans take a month or more to e approved. The fast speed of approval of hard money loans is advantageous because they give real estate investors an instant advantage over other investors.
The reason hard money loans can be approved so quickly is that they’re based on the property, not the credit score of the borrower. Credit score still matters, as hard money loans require a minimum credit score of 600 to 620. However, hard money loans use the property as collateral. If a borrower defaults on a traditional mortgage loan, the bank initiates a foreclosure. However, if a borrower defaults on a hard money loan, the lender takes on the property in a very expedient process. All hard money lenders need to be prepared for this possibility when they approve loans.
For this reason, hard money loans have plenty of risks and disadvantages. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates of 8–15%, repayment periods of more or less a year, and LTV ratios of 65–75%. Traditional mortgage loans have interest rates of just over 4%, repayment periods of about 30 years, and LTV ratios of 80%.
It’s important for investors to only trust the best hard money lenders because some hard money lenders have reputations as loan sharks. They may tack on extraneous fees or not communicate well about fees like underwriting fees, closing costs, and origination fees. Some hard money lenders don’t give to new investors because they require a successful track record of fix and flips, and new investors as a whole often have to rely on factors other than experience to get approved, like a strong financial standing.
At Hard Money Lenders IO, we have you covered. We have compiled a list of the best hard money lenders in Hampton, Virginia.
