Purchasing property is a huge step in any person’s life. Turning your property-owning dreams into a realized vision takes plenty of careful planning and money management. Dealing with a hefty mortgage can be intimidating. Not only do they weigh your wallet down for an average of 15 to 30 years, but they’re considerably expensive and can feel impossibly difficult to keep up with. And should you fall behind on payments, you could even lose your property.

Fortunately, there are a number of alternatives to the typical lending and repayment process. Source Capital offers top-tier refinancing assistance to help you pay off the balance of a drawn-out mortgage with a hard money refinance loan. Hard money refinancing is an excellent way for eager entrepreneurs to pay off the costs of one project and move onto the next real estate project without any looming debts.

At Source Capital, our services span across the state of Texas— from El Paso and Houston to San Antonio and Waco, we’ve earned an outstanding reputation lending in the Lone Star State. We’re devoted to helping our clients achieve their business goals and want to help our clients succeed in their real estate endeavors.

When you choose Source Capital for your hard money refinance loan, you choose a streamlined, no-fuss repayment solution that leaves junk fees, prepayment penalties, and dreadfully long loan-terms in the dust. Chasing your property investment dreams should feel good, with Source Capital by your side, it can.

Have a specific question in mind? Use the links below to find your answer:

What is a hard money refinance loan?

How do hard money refinances work?

What kind of property mortgages can hard money refinance lenders work with?

What are the advantages of refinancing with hard money lenders?

How do I get approved for a hard money refinance loan?

Why do clients choose hard money refinance lenders?

What is a hard money refinance loan?

Hard money refinancing is a method used by borrowers that allows them to obtain a loan that effectively replaces an original mortgage with a new one that offers better rates, more predictable costs, and a shorter overall repayment term. A hard money refinance loan is the short-term loan secured by real estate and based on the value of the collateral that replaces the debts of the original property mortgage.

So, when would you need to refinance a loan, and what should you expect? Typically, those who opt for refinancing can expect the following process:

• You have an existing loan and desire better terms or rates
• You find a lender with better loan terms
• You apply and get approved for the new loan
• The new loan pays off the existing debt in full
• You make payments on the new loan until it’s paid off, typically with shorter period terms

How do hard money refinances work?

Hard money loans work by introducing a new loan with more manageable terms to replace a loan with less than desirable contractual agreements. Typically, property buyers will refinance the mortgage tied to a purchase in order to reduce the amount due on monthly payments. Hard money refinance loans can also lower interest rates and can modify the existing adjustable-rate loan to a fixed-rate refinance loan.

There are certain situations where borrowers need access to immediate cash in order to fund other business-associated costs and will leverage the equity in their property to obtain a cash-out refinance. A cash-out refinance allows the buyer to take out a new loan that is greater than the amount of the existing loan sum.

In essence, the actual process of hard money refinancing works incredibly similarly to the process in which you first applied for the already-existing property loan.

What kind of property mortgages can hard money refinance lenders work with?

With Source Capital, we help you refinance loans taken out to fund the payments toward properties ranging from bed and breakfast fix-and-flips to multi-family units. As per the regulations and restrictions set by the Texas Homestead Act, the property in question must qualify as a non-owner occupied business-related establishment. This means we only lend to borrowers looking to refinance loans taken out on properties that will not be lived in by the borrower.

We refinance loans taken out to fund both commercial and residential properties including the following:

Residential properties:

• Apartments and condominiums
• Fix-and-flip properties: remodels, renovations, buy-and-holds<
• Single-family and multi-family residences

Commercial properties:

• Industrial zones: distribution centers, warehouses, factories
• Office spaces: businesses, executive suites, and medical offices
• Multi-family units: planned communities and complexes
• Hospitality centers: hotels, motels, bed and breakfasts, restaurants

What are the advantages of refinancing with hard money lenders?

Refinancing with Source Capital’s hard money loans come with a myriad of benefits to borrowers.

• Save money: One of the most common reasons why property buyers choose hard money refinancing is to save money on the associated interest costs that come with traditional mortgage loans. When you secure a refinance loan at a lower rate than the original mortgage rate, you’ll save loads of cash in the long-run.
• Consolidate existing debts: If you’re dealing with multiple loans, consolidating the total collective debt into a single loan helps to centralize your payments. One of the biggest challenges of dealing with multiple loans is keeping track of each individual interest rate, due date, and contractual terms. Loan consolidation streamlines everything into one manageable repayment system.
• Lower monthly payments: Refinancing with a hard money lender can lower the amount due every month on your existing property loan. Generally speaking, when you refinance, you effectively restart the clock and extend the amount of time allowed to you for complete repayment.
• Shorter loan terms: The average mortgage term rate in America is 30-years. A whopping 30 years spent paying off debts to a traditional lender. At Source Capital, our hard money refinance loans are incredibly short-term, offering pay periods ranging between 2 to 5 years.
• Loan type modification: Dealing with an unpredictable variable-rate loan can be a terrifying experience for tight-budget buyers. Hard money refinance loans feature fixed rates starting at 8.99%. Fixed interest rates offer smart protection in the event that the market rates are expected to spike.

How do I get approved for a hard money refinance loan?

Applying for a hard money refinance loans is simple when you choose Source Capital. While our online application is incredibly easy, you can give us a call or send us an email detailing your particular situation and what type of refinancing you’re looking for. Our seasoned professionals offer free, no-obligation quotes and are happy to work with you every step of the way.

Unlike conventional lenders, we base our loan approval process on the equity of the property in question. This shifted focus allows borrowers with low credit or burdensome financial histories to get the approval they need. We’ve worked with clients who had been in situations where they were unable to acquire traditional refinancing due to present and former circumstances that traditional lenders deem worrisome. Source Capital is committed to helping clients like these access the capital they need to secure the improved loan terms they desire.

After you submit your online application, it goes directly to one of our expert decision-makers. The more detail you’re able to provide about your existing loan, the better we’ll be able to accommodate your hard money refinance loan needs. Within 24 hours, and upon approval, we will send along a written offer detailing the terms and conditions of your new loan.

Whether you’re looking for hard money refinance loans in Fort Worth or Dallas, our Texas hard money lenders  are here to help you find and secure the refinance loan that’s best for your existing loan. Our team of seasoned professionals will work tirelessly to determine the best agreement available for your mortgage loan.

Why do clients choose hard money refinance lenders?

There are few things more frustrating than hearing “no” from traditional lenders. With strict and demanding processes and requirements, lending with conventional financial institutions can make refinancing your property loan an absolute nightmare. For those fed up with being turned away and denied, choose Source Capital.

We work with hundreds of eager entrepreneurs that have their focus on short-term agreements and quick repayment turnover so they can begin their next business venture. Since our inception, we’ve secured over 250,000,000 in hard money loans. Because we’re more invested in the equity of the property in question, financial histories and hardships are hardly a blip on our radar. Stress less without the fear of denial or life-long agreement terms—choosing a hard money refinance loan for your investment property lets you breeze by with manageable monthly payments and flexible terms and conditions.

As Texas’s number one direct hard money lender, we are able to process, underwrite and fund every loan in our office. Not only does this reduce the paperwork process, but it also saves you valuable time and money.

From questions about residential hard money loans to the cities we lend to in California, our seasoned professionals are committed to answering every question you may have about the refinancing process. Call us today for a free, no-obligation quote, we’d be happy to be a trusted partner for your next business venture.