Hendersonville is a city in Sumner County, which is in north Tennessee. It is located on Old Hickoey Lake and is has a population just over 61,700. Hendersonville is the fourth largest city in the Nashville metropolitan area and the 10th largest city in Tennessee. It was named after William Henderson, the first postmaster of the Nashville area. Hendersonville has also been home to many musicians in Nashville who are famous for singing country music, including Johnny Cash, Kelly Clarkson, and Taylor Swift.
According to Niche, Hendersonville is the best place to live in Sumner County. It has terrific public schools and is a great place to raise a family. It’s also one of the best places to live in Tennessee in general, and is known to give residents a dense suburban feel and be a place where most people own their homes. It has terrific public schools and is home to many young families and professionals. It has a median home value of $266,100 and a median rent of $1173.
Right now, Hendersonville is a seller’s market. Homes sell for high prices and very fast. Real estate investors in Hendersonville should be aware it’s a housing bubble — buyers are getting into bidding wars over real estate.
Investors and buyers in Hendersonville should look into hard money loans. Hard money loans are an alternative source of financing to traditional mortgage loans. They are used for real estate transactions like fix and flips and long-term rentals, but their biggest advantage in a seller’s market like Hendersonville is their very fast speed of approval. Hard money loans can be approved within a couple days, whereas traditional mortgage loans can take a month or more to be approved.
Hard money loans can be approved so quickly because they use the property as the asset. They don’t rely on the financial standing of the borrower as much as traditional mortgage loans. To be clear, hard money loans still require minimum credit scores of 600 to 620, but the majority of hard money lenders don’t use it as the main basis of the loan (although a good credit score certainly doesn’t hurt).
Hard money loans use the after-repair value of the property to determine the rates and terms of a loan. They use the property as collateral. If a borrower defaults on a mortgage, there’s an infamous foreclosure process. However, if a borrower defaults on a hard money loan, the lender becomes the homeowner in a very expeditious process. Every hard money lender has to be prepared for this outcome to see if they can flip the home themselves for a profit.
For all these reasons, hard money loans also have many disadvantages. They come with higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Hard money loans have interest rates of approximately 8–15%, which are significantly higher than the interest rates of traditional mortgage loans (just over 4%). Hard money loans also have shorter repayment periods — they need to be repaid within a year, which is significantly shorter than the repayment periods of hard money loans. Lastly, they have lower LTV ratios than mortgages, which means hard money loans require higher down payments than traditional mortgage loans.
It’s important to only trust 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 Hendersonville for your real estate transaction.