Hard Money Lenders Alabama

Yes. New Silver is a private lender that offers short term loan products for house flipping projects, but we also have 30 year rental property loans for investment properties. We also cater to real estate entrepreneurs hoping to build multi-family apartments with our new construction loans. You can also apply for a rehab loan, if your intention is to renovate a property. In other words, we cover the full spectrum of hard money loans that most Alabama real estate investors need.

Yes, New Silver is a direct lender that provides asset-based hard money loans at scale. With asset-based hard money loans, the underwriting process can be more lenient than conventional lenders. With most hard money loans, the underlying value of the asset is more important than the financial background of the investor when setting the terms of the real estate loan. As a result, the financing and credit score requirements are less stringent than a conventional loan, income verification is not needed and the debt-to-income ratio of the borrower doesn’t matter. Plus, we can get you approved and closed within 7 days. This is why real estate investors that choose New Silver tend to be very happy with their decision.

Yes. We offer ground-up construction loans for real estate developers that build single family (1-4 unit) residential properties.

Yes. Our fix and flip hard money loans can act as a bridge loan for real estate investors with loan terms ranging from 6 to 24 months in duration. More information can be found on the loan product page, together with the maximum hard money loan amounts available.

The main reason fix-and-flip hard money loans have higher interest rates than traditional bank loans is because of the risks involved in the transaction. Unlike a residential home purchase, a fix and flip project could run over budget or the real estate market could take a turn for the worse, making the property difficult to sell quickly. In other words, Alabama real estate investors could potentially lose money with a fix and flip. This risk is applicable to the borrower and the lender. The higher interest rate compensates for this risk.

On this point, it is also worth noting that the monthly payment of each New Silver hard money loan program works on interest only payments. This helps reduce the cash flow burdens of the investor while the project is underway.

The origination fee (loan points) of a hard money loan is usually between 2-3%, but this varies with each deal. To work out the expected monthly payments, it is best to use our hard money loan calculator.

In short, yes. While our credit requirements are not as stringent as a traditional lender, we do review the credit history of all our borrowers when issuing a house flip loan. This is true of most reputable hard money lenders. If you’re worried about bad credit, it is best to look at our hard money loan product page to see if New Silver is a good fit for your needs.