Hard Money Lenders Tennessee: Quick Funding Guide

Looking to finance your next real estate project in Tennessee with a hard money loan? If you’re planning to flip property or pick up a home to rent out, hard money lenders in Tennessee can offer the quick funding and flexibility you need to start your project. These loans are particularly useful if you’re on hard timeline, have limited initial capital, or dealing with credit issues. This article will guide you through the basics of hard money lending in Tennessee, including what it is, how it works, and its typical uses. We’ll also discuss alternatives to hard money loans and introduce HomeLight’s Buy Before You Sell program to help you effectively leverage your home’s equity. If you’re a seasoned investor or just a homeowner needing fast financing, this guide will provide you with the insights needed to make informed decisions. Start Making Offers Without Waiting to Sell Your Home Through our Buy Before You Sell program, HomeLight can help you unlock a portion of your equity upfront to put toward your next home. You can then make a strong offer on your next home with no home sale contingency. Learn More Editor’s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to consult your own advisor.What is a hard money lender? A hard money lender is a private individual or company that provides short-term loans secured by real estate. Unlike traditional lenders, who focus on the borrower’s credit and income, hard money lenders in Tennessee prioritize the value of the property being used as collateral. Types of Clients Hard money loans are popular among real estate investors, including house flippers and those purchasing rental properties, who need quick access to funds and flexible terms. Determining Loan Amounts Lenders use after-repair value (ARV) — the estimated value of a property after renovations — to determine loan amounts. They typically lend a percentage of the ARV to ensure the investment’s security. Interest Rates and Fees Hard money loans have higher interest rates, usually between 8% to 15% or more, and shorter repayment periods, typically 6 to 24 months. Additional costs include origination fees, closing costs, and points, which are a percentage of the loan amount paid upfront. Consequences of Default Failure to repay a hard money loan can result in the lender seizing the property to recover their investment.How does a hard money loan work? If you’re a real estate investor that needs quick financing, connecting with hard money lenders in Tennessee can be a great move. Here’s a quick rundown of how hard money loans work: