What To Expect When Dealing With Hard Money Lenders New Jersey
When you approach the negotiations table with any hard money lender in the area, you want to have your homework done, so that you can avoid surprises. That means knowing what terms to expect and how you can work with them:
• High Usury Limits – New Jersey has the highest usury interest rate limit in the United States: 50 percent for corporations and 30 percent for individuals. These limits allow your New Jersey hard money lender to ask for a high interest rate for your loan. Since you would like to have as low an interest rate as possible, you should be prepared to bring this to the table first.
• Licensing For Large Lenders – The S.A.F.E act is a federal regulation that prohibits unlicensed lenders to give loans on 1-4 family properties. Commercial non-owner occupied properties do not require licensing. If you are, for example, trying to get a hard money loan on a house you own, you are compelled to use a S.A.F.E licensed lender.
• Few Other Regulations – The commercial lending sector imposes a few other regulations for hard money lenders New Jersey. This leads to a wide disparity in the balance and quality of the loans being offered. Because of that, it is advisable to ask around and compare as many rates as possible before making your choice.
Getting Your Hard Money Loan In New Jersey
As can be seen above, New Jersey represents a very viable market for hard money lending. Getting the right deal made for you and your investment property means choosing a lender that you can trust. Since the state requires minimal regulation, the hard money lenders New Jersey is home to offer many different plans and programs for their loans.