Hard Money Lenders Atlanta: Your Guide to Fast Financing
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Kelsey Morrison Former HomeLight EditorClose
Kelsey Morrison Former HomeLight EditorKelsey Morrison worked as an editor for HomeLight's Resource Centers. She has seven years of editorial experience in the real estate and lifestyle spaces. She previously worked as a commerce editor for World of Good Brands (eHow.com and Cuteness.com) and as an associate editor for Livabl.com. Kelsey holds a bachelor’s degree in Journalism from Concordia University in Montreal, Quebec, and lives in a small mountain town in Southern California.
Are you seeking financing options for your next real estate project in Atlanta? Whether you’re eyeing a fixer-upper in Howell Station or planning to expand your rental portfolio in Buckhead, hard money lenders in Atlanta can offer the flexibility and quick funding you need. Hard money loans are an alternative to conventional financing, ideal for those with tight timelines, limited capital, or less-than-perfect credit.
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.
For non-investors looking to buy a new home before selling their current one, we’ll also explore other creative ways to leverage the equity in your current home. By the end, you’ll be equipped with the knowledge to choose the financing method that best fits your real estate goals.
What is a hard money lender?
Hard money lenders are institutions that offer hard money loans, which are named after the “hard” assets used as collateral, typically real estate. Instead of relying heavily on a borrower’s credit or income, these loans are approved based on the property’s value.
Their services are popular among real estate investors, such as house flippers and rental property buyers, who need quick access to funds and flexible terms. To determine loan amounts, hard money lenders consider the after-repair value (ARV), which is the estimated value of a property after renovation. They typically lend a percentage of the ARV to safeguard their investment.
Interest rates for hard money loans are higher, ranging from 8% to 15%, with additional fees like origination charges and points. If a borrower fails to repay, the lender can seize the property to recover their investment.
How does a hard money loan work?
If you’re considering a financing option that combines speed and flexibility for your real estate investments, connecting with hard money lenders in Atlanta could be a smart move. Here’s a quick overview of how hard money loans work:
- Short-term loan: These loans typically have a repayment period of six to 24 months, unlike the 15- or 30-year terms of conventional mortgages.
- Faster funding: When time is of the essence, hard money loans can be approved within days, in contrast to the 40 to 50 days typical for mortgage loans.
- Less focus on creditworthiness: Approval relies less on your credit score and income history.
- Greater scrutiny on the property value: These loans are based on the loan-to-value ratio of the property used as collateral.
- Non-traditional lenders: Hard money loans are usually provided by individual investors or private lending companies, not traditional banks.
- Traditional loan denial: Hard money loans are ideal for those with poor credit who have been denied a mortgage but possess significant home equity.
- Higher interest rates: These loans come with higher interest rates due to the increased risk for lenders.
- Larger down payments: Borrowers may need to provide a larger down payment, sometimes up to 20% to 30%, depending on the property’s value and loan specifics.
- More flexibility: With fewer regulations, hard money lenders can set flexible criteria for credit scores and debt-to-income ratios, and loans can help avoid foreclosure.
- Interest-only payments: Unlike traditional mortgages, hard money loans may allow for interest-only or deferred payments initially.
What are hard money loans used for?
Hard money loans cater to specific financing needs in the Atlanta real estate market. They are often the go-to solution for investors who need quick funding or face difficulties with traditional bank loans. Let’s explore the common uses of hard money loans:
Flipping a house: For those planning to flip homes in Atlanta, hard money loans provide fast access to cash for purchasing and renovating properties. These quick-turnaround loans help investors acquire homes, complete necessary renovations, and resell them for a profit.
Buying an investment rental property: Investors aiming to purchase rental properties can use hard money loans to quickly acquire and refurbish properties. This allows landlords to make essential fixes and start generating rental income faster than with traditional financing.
Purchasing commercial real estate: Hard money loans are useful for buying commercial properties because they offer flexibility and quick closings. When time is of the essence, these loans help investors quickly secure valuable properties.
Looking for alternatives to traditional loans: Individuals with significant home equity but poor credit often turn to hard money lenders. These loans are approved based more on the property’s value than the borrower’s credit score, offering a viable financing alternative.
Facing foreclosure: Homeowners on the brink of foreclosure may use hard money loans to refinance their debts or gain time to sell their property. This can provide a temporary solution to avoid losing their home or damaging their credit further.
How much do hard money loans cost?
The cost of hard money loans is generally higher due to the increased risk for lenders and the convenience of faster funding. Here are some typical costs:
- Interest rates: These can range from 8% to 15% or more, based on the lender’s risk assessment.
- Origination fees: Lenders may charge 1% to 5% of the loan amount as an origination fee.
- Closing costs: Additional fees at closing can include legal fees, appraisal fees, and other administrative costs.
- Points: Lenders might charge points, a percentage of the loan amount, paid upfront.
You can use online hard money loan calculators to estimate these costs.
Alternatives to working with hard money lenders
If you’re a homeowner looking to leverage your current home’s equity, here are a few alternatives to hard money loans to consider:
Take out a second mortgage: A home equity loan or home equity line of credit (HELOC) can provide the funds you need, often at a lower interest rate compared to a hard money loan.
Cash-out refinance your home: This option allows you to refinance your existing property, pulling out cash to finance new investments. It usually comes with lower interest rates than hard money loans.
Borrow from family or friends: Personal loans from family or friends can offer flexible repayment terms and potentially lower or no interest rates, making this a more affordable option.
Use a government-backed loan program: Programs from the FHA, VA, or USDA can help you purchase homes with lower down payments and reduced interest rates.
Consider peer-to-peer loans: These loans are provided by individual investors through lending platforms, functioning similarly to hard money loans but often with different terms.
Explore specialized loan programs: Look into specialized loans for fixer-uppers or investment property refinancing if you already have a hard money loan and want to replace it.
Request a seller financing option: In some cases, sellers may agree to finance the purchase themselves, which can lead to lower closing costs and less stringent eligibility requirements.
How to buy before you sell
Sometimes, the perfect listing appears when you least expect it. Whether it’s a charming bungalow in West End or a sleek condo in Midtown, you want to act fast. If you’re an Atlanta homeowner aiming to buy a new home before selling your current one, HomeLight offers a seamless solution.
The Buy Before You Sell (BBYS) program lets you use the equity in your current home to make a strong, non-contingent offer on a new property. If your home qualifies, you can get your equity unlock amount approved in 24 hours or less, with no upfront costs or commitment. This allows you to purchase your new home confidently and sell your existing one vacant, avoiding the hassle and expense of moving twice.
Here’s how HomeLight Buy Before You Sell works:
While BBYS comes with a flat fee based on your current home’s sold price, the savings in other areas, like moving expenses and temporary housing, and possibly a better purchase price of your new home, could outweigh the cost. Additionally, HomeLight’s BBYS fees are generally lower than bridge loan interest rates, which currently range from 9.5% to 12%.
3 top hard money lenders in Atlanta
Hard Money Loans Georgia
Georgia Private Loans, also known as HardMoneyLoansGeorgia, is a direct private lender headquartered in Atlanta, specializing in short-term, real estate–secured financing. The firm is structured to move quickly, with underwriting completed in as little as 24 hours and closings possible within two business days.
Loan amounts typically range from $20,000 to $5 million, accommodating both small and large investment needs. Financing is offered at a fixed annual interest rate of 16 percent on an interest-only basis. With a focus on speed, clarity, and asset-based lending, Georgia Private Loans serves investors seeking efficient capital solutions.
Lending clientele: Non-owner-occupied residential real estate and commercial real estate
Loan criteria: Up to 65% LTV with a 25% to 50% down payment if purchasing a property
Hard Money Loans Georgia boasts a 5-star rating on Google, with several clients praising the team for their quick turnaround times, competitive rates, and professionalism. Some highlight the ability to get deals done efficiently while maintaining a smooth, seamless process from start to finish. Many appreciate the straightforward approach and look forward to completing more transactions together, citing reliability and strong execution as the team’s key strengths.
Website: hardmoneyloansgeorgia.com
Phone number: 404-229-8004
Fairview Commercial Lending
Fairview Commercial Lending is a privately funded hard money lender headquartered in Atlanta’s Sandy Springs area, serving real estate investors throughout Georgia. The firm provides hard money, private money, and bridge loans for both residential and commercial properties statewide.
With lending roots dating back to 1975 and more than 100 years of combined Georgia real estate lending experience among its partners, Fairview Commercial Lending brings deep local market insight to every transaction. Loan amounts start as low as $50,000, with funding typically completed within five to ten days.
Lending clientele: Residential and commercial real estate investors
Loan criteria: Up to 55% LTV
Fairview Commercial Lending has been accredited by the Better Business Bureau (BBB) since 2021 and now holds an A+ grade. Its Google Business Profile reflects a high 4.9-star rating on Google.
Clients say the company delivers a smooth and efficient experience, as the team is easy to work with. They appreciate having everything organized and ready within about a week. Reviewers often mention the positive, professional environment and supportive staff. Many describe the process as straightforward and well-coordinated, making Fairview Lending a dependable choice for fast, stress-free funding.
Website: fairviewlending.com
Phone number: 866-708-2867
Locklin Capital
Founded in 2018 as a home-buying investment company, Locklin Capital shifted its focus in 2019 to lending on the same types of properties it once purchased. Today, the firm provides both new and experienced investors with simple, cost-effective funding solutions, allowing them to concentrate on acquiring properties and executing their exit strategies.
Locklin Capital specializes in short-term loans that can close nearly as quickly as a cash transaction, while long-term loans are generally completed within 15 to 30 days. The closing costs, which typically range from 2% to 5% of the loan amount, cover loan origination, processing, appraisal, title insurance, and related services.
Lending clientele: Residential and commercial real estate investors, plus homeowners
Loan criteria: Up to 75% ARV (fix-and-flip) and up to 95% LTV (conventional)
Locklin Capital has a perfect 5-star rating on Google, with several reviewers commending the team for its fast, reliable, and knowledgeable lending support. They highlight smooth closings, quick approvals, and consistent follow-throughs, exactly as promised.
Many are impressed by the ability to close deals in as little as one week. Reviewers recommend Locklin Capital as a strong partner for growing a real estate portfolio through efficient and dependable financing.
Website: locklincapital.com
Phone number: 770-250-2051
Investing in real estate?
Hire an investor-friendly real estate agent who can help you get access to off-market properties at a discount and assess potential rental income based on market trends. HomeLight can connect you with investment property specialists at no cost.
Should I partner with a hard money lender in Atlanta?
Deciding whether an Atlanta hard money loan is right for you depends on your specific situation and real estate investment objectives. This type of financing is particularly useful for real estate investors who need quick access to funds or have projects requiring fast turnarounds. If you can manage the higher costs and shorter repayment terms, a hard money loan might be the perfect solution for your next investment opportunity.
But if you’re an Atlanta homeowner who wants to leverage your home’s equity without dealing with high interest rates, HomeLight’s Buy Before You Sell program offers an excellent alternative. This program allows you to make a competitive offer on a new home while paying a small flat fee, simplifying the process and reducing the stress of moving.
As with any major financial decision, it’s important to consider your long-term strategy and consult with a financial advisor to ensure it aligns with your overall investment goals. If you’re looking to connect with investor-friendly real estate professionals in Atlanta who have a network of trusted hard money lenders, let HomeLight introduce you to top agents in your area.
Header Image Source: (ibuki Tsubo/ Unsplash)
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.
At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.
