Harrisonburg is a city in the Shenandoah Valley region of Virginia, and it is located in Rockingham County. It is the home to James Madison University, a school with over 20,000 students and one of the biggest public research universities in Virginia. Harrisonburg has a population of just over 50,000 people, and it’s also home to the universities, like Eastern Mennonite University. Interestingly enough, Harrisonburg is home to a very robust Mennonite population, as well as an increasingly diverse ethnic and linguistic population. In 1992, the company Rosetta Stone was founded in Harrisonburg.
According to Niche, Harrisonburg is a city that has a lot of bars and restaurants to make a terrific night scene, which makes sense given the city’s status as a college town. It gives residents a dense suburban feel, and is a place where most residents rent their homes. Harrisonburg is also home to many restaurants and parks, and it’s also home to many young professionals. It is home to great public schools, and Harrisonburg is a very affordable place to live — it has a median home value of $203,600 and a median rent of $883.
Right now, Harrisonburg 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 prime real estate in the city. Homes are selling fast and for higher than listing price.
Real estate investors in Harrisonburg should consider hard money loans. Hard money loans are an alternative source of financing to traditional mortgage loans, and they have a huge advantage in seller’s markets like Harrisonburg. Hard money loans have the advantage of having very fast speeds of approval. While traditional mortgage loans can take a month or more to be approved, hard money loans can be approved in a couple of days. This fast financing gives real estate investors an instant advantage over other competitors.
Hard money loans can be approved so quickly because they use the property as the asset, not the financial standing of the applicant. Hard money loans might have a minimum credit score of 600 to 620, but they’re predominantly used for real estate transactions. Hard money loans are mostly associated with fix and flips, long-term rentals, and repairing homes in disrepair. They use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a foreclosure. But if a borrower defaults on a hard money loan, the lender takes on the property and becomes the homeowner. This can be a very risky process for the lender, so all hard money lenders look into this possibility before approving a hard money loan.
These loans also have a lot of disadvantages as a result. They are more expensive and unforgiving than traditional mortgage loans. Hard money loans have higher interest rates, lower repayment periods, and lower LTV ratios than traditional financing. They have interest rates of 8–15%, repayment periods of more or less a year, and LTV ratios of 65–75%, which are all more unforgiving than the just over 4% interest rates of traditional mortgage loans, repayment periods of around 30 years, and LTV ratios of around 80%.
It’s essential to only trust the best hard money lenders, since some hard money lenders have reputations as loan sharks for not communicating well about fees, or tacking on extraneous fees. That’s why we at Hard Money Lenders IO have made a list of the best hard money lenders in Harrisonburg, so you can get the best financing for your real estate transaction.
