Newport News is the fifth most populous city in Virginia, and it is located in southern Virginia in the Hampton Roads region. It has a population just over 186,000 people. Newport News is known for its harbors, docks, military bases, and airport. Newport News is known for its terrific weather, great cost of living, and great schools. It is also known as a major shipbuilding center, building major aircraft carriers around the country. With its proximity to Virginia Beach and Williamsburg, it is a great place for tourism as well. It is also home to Christopher Newport University and Old Dominion University.
According to Niche, Newport News gives residents a dense suburban feel, and is a place most people rent their homes. There are many restaurants and bars that give Newport News terrific night life, and it is home to many parks as well. Newport News is also home to many families and young professionals, as well as above average public schools. It has a median home value of $194,000 and a median rent of $1057.
Right now, Newport News is a seller’s market. It’s a place where demand is outpacing supply, and where homes are selling fast and for higher than the listing price. Real estate investors in Newport News are getting into bidding wars over the best real estate in the city.
Hard money loans might be the best way to invest in real estate in Newport News. These loans are also known as last resort loans and short-term bridge loans, and they’re primarily used for real estate transactions like fix and flips, long-term rentals, and construction projects. Their biggest advantage in a seller’s market like Newport News is their very fast speed of approval — hard money loans can be approved in a couple of days, compared to traditional mortgage loans, which take a month or more to be approved. This gives real estate investors an instant competitive edge over other investors because of their fast financing.
Hard money loans can be approved so quickly because they use the property as the asset. Hard money loans don’t depend on the credit score of the borrower as much as traditional mortgage loans — they have credit score minimums of 600 to 620, and hard money loans only rely on financial standing to lower interest rates. However, hard money loans use the property as collateral. If a borrower defaults on a mortgage, the bank initiates a foreclosure in a very costly process. If a borrower defaults on a hard money loan, the lender becomes the homeowner.
This is a process that’s very risky for the lender, and this risk is reflected in the terms and rates of hard money loans. Hard money loans have higher interest rates, shorter repayment periods, and lower LTV ratios than traditional mortgage loans. They have interest rates between 8–15%, repayment periods of approximately a year, and LTV ratios of 65–75%. Traditional mortgage loans, by contrast, have interest rates just over 4%, LTV ratios of around 80%, and repayment periods of around 15 to 30 years. It can be very difficult to pay off a hard money loan if a real estate investment does not pan out.
It’s important to get the best terms and rates for your hard money loan, which is why we at Hard Money Lenders IO have made a list of the very best hard money lenders in Newport News. These are the best financing partners for your real estate investment.