Like Mount Vernon, New Rochelle is a suburb of New York City. It is located in the southeastern part Westchester County and is known otherwise as New Rock or New Rock City. It is the seventh-largest city in the state of New York with almost 80,000 people, and is also known as “Queen City of the Sound.”
New Rochelle is one of the most historic cities in New York and is only a 35-minute train ride away from Grand Central Station. New Rochelle is a robust urban city within itself and is a great place to live. It is known for having great schools and is considered one of the best places to live in New York. New Rochelle gives residents an urban feel and most people in the city own their homes. It is a place where most people own their homes, and night life in New Rochelle is very robust. It is a place that’s home to many young professionals and people who are raising young families.
New Rochelle has a median home value of $575,300 and a median rent of $1,534, which is very high for many residents. Right now, New Rochelle is a buyer’s market. It’s a place where supply transcends demand, and homes are staying on the market a long time and selling for lower than listing prices. New Rochelle, like surrounding parts of Westchester County (including Yonkers and Mount Vernon), is currently facing a housing crisis where homes and the cost of living are not affordable for working-class families.
This has led Senate Majority Leader Chuck Schumer to say “Westchester has an affordable housing crisis.”
However, real estate investors have opportunities to invest in New Rochelle through hard money loans. Hard money loans are also known as last resort loans, but they’re mainly used for real estate transactions like fix and flips, long-term rentals, and construction projects.
Hard money loans can be used to repair properties in disrepair in New Rochelle, and turn those properties into affordable and appealing houses for renters. In a seller’s market, hard money loans usually have the advantage of being approved very quickly. However, in a buyer’s market like New Rochelle, hard money loans have other advantages: they can qualify as cash for cash-only houses.
Cash-only means real estate investors can only use cash to pay for houses, but it also means a home is in such a bad condition of disrepair that they don’t qualify for traditional financing. Hard money loans may qualify as cash in cash only purchases because hard money loans are not traditional financing. Hard money loans were essentially meant to repair homes in disrepair.
Since they use the property as an asset, hard money loans are inherently very different from traditional mortgage loans. Hard money loans use the property as the asset and determine their rates and terms based on the after repair value of the property. They use the property as collateral, not the financial standing of the applicant. If a borrower defaults on a mortgage, the bank initiates foreclosure proceedings. But if a borrower defaults on a hard money loan, the lender takes on the property.
Because of this, hard money loans are very risky. 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%. These are all less forgiving than traditional mortgage loans.
At Hard Money Lenders IO, we have compiled a list of the best hard money lenders in New Rochelle. Look no further for a partner in your real estate transaction.