Mishawaka is known as “the Princess City,” and is located just off the St. Joseph River in Indiana. It is considered part of the South Bend metropolitan area, and it’s considered one of the best places to live in Indiana. The public schools are very good in Mishawaka, and the suburb is very affordable. With a median home value of $102,900 and a median rent of $780, Mishawaka is extremely affordable compared to the national average.
Mishawaka is split around 50/50 for people who rent their homes versus people who own their homes. Its affordability and low cost of living make Mishawaka one of the best suburbs for young professionals in the state. It has lots of green space and parks.
Right now, Mishawaka is a seller’s market, which means demand for housing is outpacing supply in Mishawaka. In a seller’s market, it’s important to get bids in quickly to compete with the rest of the bidders on the market.
Hard money loans might be a great resource for real estate investing in Mishawaka. Hard money loans are otherwise known as short term bridge loans and last resort loans. Their biggest advantage in a seller’s market is their fast speed of approval, which makes hard money loans very advantageous compared to traditional mortgage loans, which can take a month or more to be approved. They can be used for rehabilitation projects, construction projects, fix and flips, and long-term rentals.
Hard money loans can be approved so quickly because they’re based on the property, and the after repair value of the property. They don’t use the borrowing history of the investor as the basis of the loan, but still have minimum credit score requirements of 600 to 620. Hard money loans use the property as collateral, which means if a borrower defaults on a hard money loan, the lender takes the property. It’s not an expensive and lengthy foreclosure proceeding.
However, hard money loans also come with plenty of disadvantages as well. They have high interest rates, short repayment periods, and low LTV ratios compared to traditional mortgage loans. Hard money loans have interest rates of 8–15% on average. They have repayment periods of more or less a year, compared to traditional mortgage loans, which have repayment periods of 15 years or 30 years.
Hard money loans have repayment periods of more or less a year. They also have LTV ratios of 70% to 80%, which requires real estate investors to put down greater down payments than people who get approved for traditional mortgage loans.
However, it’s important to not just trust any hard money lender. Not every lender is fair to borrowers, as some have extraneous feels like origination fees and closing costs. Also, not every hard money lender gives to foreign nationals or new investors. New investors in particular may be at a disadvantage because hard money lenders usually require a successful investing history. Foreign nationals may encounter significant barriers investing in real estate using hard money loans as well due to documentation requirements.
At Hard Money Lenders IO, we have you covered in finding the best hard money lenders in Mishawaka, so you can find the best hard money lenders in the city. Look no further for a good hard money lender in Mishawaka