North Bethesda is a city just north of Bethesda and considered one of the best places to live in Maryland. Still in very close proximity to Washington D.C., the Metro, and the National Institutes of Health (NIH), North Bethesda is home to many young professionals, giving an urban feel while simultaneously offering an appealing area to new homeowners.
According to Niche, North Bethesda is a suburb of Washington D.C., many residents tend to be very liberal, and the public schools are very highly rated. North Bethesda has an urban feel but has a median home value of $567,50 and a median rent of $1,910. 39% of adults in North Bethesda have a Master’s Degree or higher.
Hard money loans are often used for long-term rentals, fix and flips, repairs for distressed properties, and repairs for construction projects. They are also called bridge loans or last-resort loans because and primarily used in real estate investments. The lender is also usually an individual, not a bank.
There are a lot of advantages to hard money loans, especially in an area as competitive as North Bethesda. Realtor.com notes that North Bethesda is currently a seller’s market, which means demand for homes is rapidly outpacing supply. In January 2022, the median amount of days on the market was 72 days.
Hard money loans can be approved very quickly as opposed to traditional loans from banks. They can be approved within a couple of days because they don’t rely on the credit history of the borrower, while traditional mortgage loans from banks can take at least a month to be approved.
Despite hard money lenders requiring a minimum credit score of 600 to 620, lenders use the property as collateral and the basis for the loan’s rates. If a borrower defaults on a hard money loan, the lender owns the property, not undergoing lengthy and costly foreclosure processes.
Hard money loans present significant risks for both the lender and the borrower. They usually have lower LTV ratios, shorter repayment periods, and higher interest rates. This means hard money loans are more expensive and need to be paid off sooner than traditional loans from the bank.
But it’s important not to just trust any hard money lender. Many hard money lenders tack on extra fees like upfront application fees and due diligence fees, and it’s important to be on the lookout for hard money scams. It’s important to only trust reputable and well-established lenders, especially if you are a new investor (since many require a successful track record with investing).
We at Hard Money Lenders IO have you covered. We have researched and compiled a list of some of the best hard money lenders in North Bethesda, Maryland.
