West Valley City is a suburb of Salt Lake City and is located in Salt Lake County. It has a population of just over 140,000 people, and it also has been growing significantly fast. It is home to the Maverik Center, where the Utah Grizzlies play, and the USANA Amphitheatre. West Valley City is home to Discover Financial, which is the biggest employer in the city.
According to Niche, West Valley City is a very diverse suburb that gives residents a sparse suburban feel and is a place where most people own their homes. It’s a place that has a lot of outdoor activities, as well as a plethora of health and fitness opportunities. It is a great city to commute and has a lot of great jobs. West Valley City has a lot of parks and has a median home value of $242,500 and a median rent of $1,170.
Right now, West Valley City is a seller’s market. It is a place where demand is exceeding supply, and where there aren’t enough homes to meet the demand for housing. West Valley City is a suburb where real estate investors 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 West Valley City. West Valley City is a place that has a very competitive real estate market, and hard money loans give a tremendous advantage of having very fast speeds of approval. Hard money loans are approved significantly faster than traditional mortgage loans. They can be approved in a couple of days, whereas traditional mortgage loans take a month or more to be approved. They give investors a huge competitive advantage over investors that use traditional mortgage loans.
Hard money loans also have a lot of risks. They have much higher interest rates than traditional mortgage loans, and their interest rates are 8–15%, which are much higher than the 5.6% interest rates of 30 year mortgages in this current housing market. Hard money loans also have much shorter repayment periods of more or less than a year, which are much shorter than the average 30 year repayment periods of traditional mortgage loans. Hard money loans also have LTV ratios of 65–75%, which are much lower than the 80% LTV ratios of traditional mortgage loans.
It’s important to note hard money loans are inherently very different from traditional mortgage loans. Hard money loans use the property as the asset, not the credit score of the borrower. They use the credit score of the borrower for their minimums, but they also use credit to lower interest rates for new investors. Hard money loans also use the property as collateral, which means if a borrower defaults on a mortgage, the bank initiates a foreclosure. But if a borrower defaults on a hard money loan, the lender takes on the property and becomes the homeowner.
However, it’s important to not just trust any hard money lender. Hard money lenders can be known as loan sharks as times because they can tack on extra points and fees. Hard money lenders also rarely give to new investors because they require a successful track record of real estate investments.
We have you covered at Hard Money Lenders IO — here are the best hard money lenders in West Valley City.