Time Shares Hard Money Loans are Offered by Time Shares Hard Money Lenders
Hard Money Loans for a Time share
Americans are increasingly interested in the time share concept. A time share in the proper location can be a terrific investment. Perhaps you’ve found one for sale, or you need to upgrade the one you own. A Hard Money Loan may be what you need to pay for that upgrade to your property, or perhaps you want to purchase the one that is for sale. If your present credit situation, or the location or physical conditions of the property won’t allow financing through conventional conforming loan channels like banks and mortgage brokers, now may be a good time to apply for a hard money loan.
Reasons for Applying for Hard Money Time share Loans
- Credit maxed out
- Property in remote location
- Property not of conventional construction
- Value based on land alone
- Value cannot accurately be determined
- Potential income from property cannot be verified
- Cannot give a completely accurate estimate of what addition will cost
- Need to act quickly
There are hard money lenders all over the country: private investors, mortgage companies, or banks that deal in hard money financing can help finance renovations or acquisition of another property. If you deal with a hard money loan broker, be prepared to pay “points”: an up front percentage that probably will start somewhere around 3%. The collateral that secures the loan will be the time share itself. The lender may also ask you to put up other assets to consummate the deal. Hard money lenders will typically finance only a percentage of the purchase price of the time share–usually 65% to 75% (Loan to Value Ratio). Since the property will produce income, a loan can be based on the value of the property plus its income producing potential. Interest rates might possibly run from 8% up; may initially be fixed, but later become variable.
Experience in running a time share will be a plus in applying. Be prepared to give the lender the following, in addition to color photos of the land and any buildings.
- Location of the property
- Date of purchase
- Date of closing
- Purchase price and appraisal if available
- Estimate of fair market value
- Reason for applying for hard money loan
- Verifiable gross income or expected income
- Yearly expenses to be incurred on property
- Estimate of proposed repairs to present property
Disclaimer: The hard money loan calculators found on this website are offered only to estimate monthly loan payments of hard money Time Shares loans. No guarantee is offered or implied as to their accuracy. Hard money Time Shares loans are non conforming, they do not conform to the underwriting guidelines of Fannie Mae or Freddie Mac. Each private equity hard money lender has their own fee structures which may include points at closing and early prepayment penalties. Discuss all of the details of your particular hard money Time Shares loan including all costs and fees with your selected hard money lender.