Typically when you’re looking for a loan to build a new home with, rehab a property, make additions to your current home or finally address home maintenance issues you haven’t tackled yet, you usually apply for a mortgage, second mortgage, or home equity loan or line of credit. One of the troubles is that both residential and commercial mortgages usually come with a high bar you have to meet to be eligible for them, and down payments can be high as well. The good news is that as a Wisconsin resident, you don’t have to limit yourself to the traditional residential or commercial real estate loan options. Depending on what you want to do with your property, you could use any of the following financing options.
Hard Money Or Bridge Loans
There are certain construction loans that can be much easier to finance than traditional mortgages or construction loans because you don’t have to go through the banks to get them. These are often known as hard money or bridge loans, and usually they’re financed by investment firms that use capital such as REITs or real estate funds. Usually these are meant for more short-term use than mortgages, and they’re granted almost exclusively on the basis of what the property is worth instead of against the borrower’s credit score. Bridge loans are usually hard money loans that will convert to a residential mortgage once property construction is complete. But since these loans usually can get funds released within one week and usually last no more than one year, they’re generally intended for those who want to flip a home or quickly put a rental property on the market.
Personal Unsecured Online Loans
If you run into an emergency home repair that your savings won’t cover, you may want to consider cash advance online loans in Wisconsin. Some cash advance online loans Wisconsin may be approved as soon as one business day at the latest if you meet the right requirements. Most of these smaller loans are for costs that would only be about $1,000 or less, though you can sometimes borrow more. But you do want to make sure you only use them for short-term purposes.
Peer To Peer Home Renovation Loans
There is another option for more costly repairs and renovations that can be better than a traditional home equity loan that you can get through a peer-to-peer lending platform. This is also another online loan platform in which usually multiple lenders are pooled together to fund loans, and borrowers have an easier time qualifying for loans than they usually do with banks since there are ways lenders can offset borrower risks. Many P2P lending platforms have financing for home remodeling or construction projects where you can get quick funding and usually very favorable interest rates. Different lending platforms have different credit requirements, and usually loans and lines of credit are reported to the credit bureaus.