Longmont is a suburb located 33 miles away from Boulder. It has a population of just under 99,000 people, and is the 14th biggest city in Colorado. It was named after explorer Stephen Long, and is known for being very close to the Rocky Mountains. Longmont is known for its craft beverage industry, as well as being an epicenter for arts and creativity in Colorado.
According to Niche, Longmont is a Denver suburb with a dense suburban feel. It’s a place where most people own their homes and that is known for having lots of health and fitness opportunities and outdoor activities for active people to pursue. It has great night life through bars and restaurants and is a great place to raise a family. Longmont, being so close to major cities like Denver and Bolder, is known for being very commutable and is home to many young professionals and families. It has a median home value of $396,000 and a median rent of $1437.
As of June 2022, Longmont is a seller’s market. It’s a place where demand is outpacing supply and where real estate investors are getting into bidding wars over the best housing in town. As a Denver suburb, Longmont is seeing housing prices increase, and is a place where homes are selling fast and for higher than listing price. Like much of the rest of the housing market across the country right now, Longmont is in a housing bubble.
Hard money loans might be the best way to invest in real estate in Longmont. Hard money loans are also known as last resort loans, and there’s a reason they have that nickname. They are known for their very unforgiving terms and rates. They have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. Most famously, they have interest rates anywhere from 8–15%, which is much higher than the interest rates of traditional mortgage loans, which even in this housing market are much lower at 5.6% on average.
It’s essential to be aware of these risks before weighing in the benefits. For many investors, the pros of hard money loans might outweigh the cons. Hard money loans can be approved incredibly quickly compared to traditional mortgage loans. Traditional mortgage loans usually take a month or more to be approved, in which time an investor might lose out on a home that sells quickly in the Longmont housing market. Hard money loans, by contrast, can be approved in only a couple of days. This is an incredibly pro for real estate investors because it helps them become more appealing buyers.
The reason hard money loans are so expensive and can be approved so quickly is because they have a different asset than mortgages. Mortgages typically use the credit score of the borrower as the asset. But hard money loans use the property as the asset. It’s not like credit has no bearing on hard money loans, as most hard money lenders have minimum credit score requirements of 600 to 620. Hard money loans also weigh the credit of the borrower for new investors in getting better interest rates. They also use the property as collateral, which means there isn’t a foreclosure when a borrower defaults on a hard money loan. Instead, the lender becomes the homeowner themselves and tries to flip the property.
That’s why it’s important to only choose the best hard money lenders. That’s why we at Hard Money Lenders IO have made a list of the best lenders in Longmont.