Are you in the market for your first investment property or looking to expand your current business venture, short term property loans can be the perfect solution. These lending options come in both residential and commercial forms and are commonly referred to as bridging loans or buy-to-let mortgages.
These types of financing don’t rely on your creditworthiness; rather, lenders consider the value of your property when lending. They can be an attractive alternative to traditional loans for those with less-than-perfect credit history.
1. Fast Approval
If you’re in the market for a new home or looking to get an amazing deal on vacation property, short term property loans could be your perfect solution. They come in all forms and sizes from bridge loans to mortgages and offer you ways to boost your budget without being tied down by fixed rate obligations. Ultimately, the ideal short term property loan depends on what your needs and budget are; selecting the right one now will save time, money and headaches down the line.
2. Low Interest Rates
Low interest rates provide homeowners with a great incentive to purchase new homes or renovate existing ones. A lower mortgage payment makes your monthly mortgage payment much more manageable, enabling you to buy a bigger or better-built property that may have greater resale value in the long run.
Short term property loans offer borrowers an opportunity to obtain cash from private lenders without needing their primary residence as collateral. Though these lenders may have more relaxed credit requirements, this may result in slightly higher borrowing costs.
Other costs associated with low interest rates include a loss of income for savers, which could have an adverse effect on the economy. Banks and other financial institutions may overinvest in long-term assets at low rates which could result in losses if asset prices rise. Hence, consumers need to be aware of these effects and make financial decisions based on their individual needs.
3. No Collateral
Financing a small business is essential, yet not every small business has valuable assets that could serve as collateral. Unfortunately, some of the equipment used by these enterprises simply isn’t worth enough to serve as security for banks or lenders.
Small business owners typically face difficulty getting a loan. Banks prefer large amounts of collateral, such as a house or real estate property, to reduce the risk associated with a loan transaction.
No collateral business loans offer small business owners an alternative solution to this process, enabling them to get the money they need without risking personal assets. This can be particularly advantageous when seeking funding for an urgent project.
4. Easy Repayment
For those in need of immediate cash, short term property loans could be the ideal solution. They can be used for purchasing, refinancing or improving your current home as well as temporary cover in case of emergencies. What’s great about them is they’re fast and easy to obtain with often no collateral required.
Finding the ideal short term property loan for your needs requires extensive research. Use online comparison sites like WalletHub and LendingTree to help sort through offers from bad to good, while also considering more traditional lenders like banks, credit unions and peer-to-peer lending companies.
When looking for the cheapest short term property loan, be wary of high interest rates and fees that may appear unattainable. When making your decision, compare each lender’s rates, terms, and credit limit before making any final decisions.