Union is a town in New Jersey located in Union County, and Union has a population of just over 55,000 people. Union used to be called Connecticut Farms once upon a time, and is the site of a famous battle during the American Revolution. Union today is known as a New York City suburb where there are many shops and restaurants, and where residents can good food from very diverse cultures. It is a very safe place to live with lots of green space.
Niche says Union is a very diverse place with great night life. It is one of the best place to live in New Jersey, giving residents a dense suburban feel and a place where most people own their homes. There are many coffee shops and restaurants and bars given that Union is home to Kean University. There are also great public schools. The median home value of Union is $329,000, while the median rent price is $1,547.
Right now, Union is a seller’s market. It is a place where demand is rapidly outpacing supply and where real estate investors are getting into bidding wars over the best real estate in the town. Homes are selling fast and for above listing price in Union.
Hard money loans might be the best way to invest in real estate in Union. Hard money loans are loans that are an alternative to traditional mortgage financing — they’re usually used for house flipping and real estate transactions that turn homes in disrepair into appealing properties.
Hard money loans are also known as last resort loans and short-term bridge loans, but their biggest advantage is their very fast speed of approval. In seller’s markets like Union, hard money loans can be approved in a couple of days. This is much faster than mortgages, which can take a month to be approved, and this very fast speed of approval is especially advantageous in bidding wars where real estate investors need fast financing to compete.
The reason hard money loans can be approved so quickly is because they use a different asset from traditional mortgage loans. While mortgages rely on the credit score of the borrower, hard money loans predominantly rely on the property. It’s not like the credit score does not matter, as hard money loans require a minimum credit score of 600 to 620. However, they use the property as collateral. If a borrower defaults on a mortgage, there’s the infamous foreclosure procedure which decimates a borrower’s credit score. But when a borrower defaults on a hard money loan, the lender takes on the property in a very expeditious process.
This results in a lot of risks and drawbacks for hard money loans, particularly around the terms and rates of the loans. Hard money loans have very unforgiving interest rates, repayment periods, and LTV ratios. Compared to traditional financing, hard money loans have interest rates of 8–15%, which are higher than the just over 4% interest rates of mortgages right now. They also have repayment periods of around a year, which are a lot shorter than the 30 year repayment periods of mortgages. With lower LTV ratios, borrowers of hard money loans often have to show greater buy-in through down payments.
To get the best terms and rates, it’s important to be paired with the best hard money lenders. That’s why we at Hard Money Lenders IO have selected the best lenders in Union for your real estate transaction.