6 Best Hard Money Lenders in Alaska

Alaska is recognized as the largest U.S. state by land area and has some of the most beautiful scenery in the world. It’s home to around 736,000 people and spans over 663,000 square miles. Though much of it is remote wilderness, Alaska is an exceptional place to live for those who enjoy nature as it is known for its natural spaces, including wildlife refuges and national parks. With a moderate cost of living in cities like Anchorage, Fairbanks and Juneau and exceptional areas like Denali National Park and Preserve, there’s no doubt this is a place people want to call home.

Like much of the rest of the U.S., home prices in Alaska have risen over time. The average sale price for a home in Alaska was $477,219. Homes range widely in terms of style and features, and typical suburban developments are less common than estate-like properties with ample land. Yet, the area has a demand, and with love inventory, there are many reasons to buy real estate here.

More so, there is also demand for rental property in Alaska. Currently, 71.3% of people own their homes here, and 28.7% rent, according to the U.S. Census Bureau. Only 69% of rentals are vacant, which may mean there is more demand than there are enough homes in some areas. For those who are considering the investment in rental properties in Alaska, there could be potential in the area’s largest cities.

How hard money loans work

Hard money lenders in Alaska provide access to private money loans to those who may not qualify for traditional residential mortgages. These loans are from private money lenders like individuals or specialized companies that offer different terms and conditions for borrowers. The property itself helps to guarantee the home, which means that if the property owner stops making payments on the loan as agreed, the lender will be able to force the sale of the home through foreclosure to recoup some of its losses.

These loans tend to have higher interest rates and terms than other types of loans, which means they could cost more for borrowers. However, they are often used for short-term lending upfront until another loan can be secured to buy out the first. It is important to know that hard money loans are not often meant to last for decades, and most lenders offer terms that are closer to one to five years. However, they can be flexible enough to meet many needs, such as helping to cover the costs of a fix and flip property, which could allow the borrower to borrow money long enough to purchase, repair, and then sell the property.

One of the key differences in hard money loans is that they are often based on the value of the property after repairs are made to it. This is called the after-repair value of the home. This helps in situations where property owners need to borrow more money to cover the purchase price of the home along with funds needed to make repairs and upgrade the property before resale or before refinancing the home again into long term mortgages. Because they are shorter term loans, interest rates are higher, but the cost is not as high overall because the goal is to pay them off quickly.

6 Top Alaska hard money lenders

If you’re ready to learn more about the best hard money lenders lenders in Alaska, here are the top options we’ve found through our research.

1. Blueberry Funding

Started in 2005, Blueberry Funding focuses exclusively on projects in. Alaska. They provide hard money loans to local real estate investors who are pursuing fix and flip, fix to rent and bridge financing in Alaska.

We contacted Blueberry Funding to learn more about their private lending business and here are some of the highlights:

• Up to 75% of after repair value
• Loans cover up to 90% of the purchase price and up to 100% of all rehab costs
• Interest only payments during loan term
• Underwriting handled in house
• 12-month terms
• No pre-payment penalty after the first four months
• No credit check required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

2. EquityMax

EquityMax is based out of Florida and most of its business in the state but is able to lend throughout the United States. Founded by Brad Emmer in 1990, EquityMax has decades of experience as a hard money lender.

We reached out to EquityMax to learn more about their hard money loan rates and these are the key highlights that you need to know:

• Single Family Homes
• 1-4 Multi-Unit Properties
• Condos and Townhomes ok
• Commercial property and Industrial Warehouses OK
• Direct lender that has decision making over financing deals.
• Can originate loans to individuals, LLCs, corporations, land trusts and self-directed IRAs.
• No prepayment penalties
• No minimum credit score required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan program based on your specific circumstances.

3. Easy Street Capital

East Street Capital is based in Austin, Texas but lends nationwide except in North and South Dakota. Founded by Stephen Hagerman in 2016, Easy Street Capital has over six years of experience in the real estate investing world.

We reached out to Easy Street Capital to learn more about their hard money loans and this is what we found:

• Interest rates range from 6.9% – 10.9%
• Points range from 2-3
• There is a $1495 document fee
• No minimum credit score required
• Down payments of at least 10% required
• Renovation financing ok
• Fix and Flip loans do not typically have prepayment penalties

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

4. LendSimpli

LendSimpli is a hard money lender based in Tampa, Florida. They can lend nationally in most states but may not be able to lend if the property is in a rural area. Founded by Brenden Crampton and Matthew Davies in 2018, they have nearly four years of experience in the private lending real estate investing market.

We reached out to LendSimpli to get more details about their bridge loan product and this is what we found:

• Loan amounts up to $5 million for 1-4 unit properties
• Loan amounts up to $20 million for 5+ unit properties
• Single family (1-4 units)
• Multifamily (5-20 units)
• No owner-occupied properties
• Loan terms 12-24 months
• Interest-only payments with rates starting at 8.50%
• Max LTC is 90% of project costs
• Minimum credit score is 660
• Prefer that you have at least two transactions in the past three years

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

5. HouseMax Funding

HouseMax Funding is based out of Austin, Texas but has a national footprint when it comes to real estate industry lending. Started by Jeff Fetcher and Alex Morris, HouseMax provides asset-based loan financing to investors for real estate transactions.

We reached out to HouseMax to learn more about their hard money lending program and here is what we found:

• Minimum loan amount is $75,000
• Lends up to 75% of the after-repair value (APV)
• 1-3 points origination charge
• 3 months reserves required
• Direct lender that approves loans internally and funds using their own private capital.
• Lends in urban and suburban communities in all 50 states.
• Goal is to close loans in 10 days or less.
• Specializes in fix & flip loans, new construction and rental loans
• Multi-family and commercial loans are ok

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

6. Stratton Equities

Stratton Equities is a nationwide direct hard money lender for real estate investors. Founded by Michael Mikhail in 2017, Stratton Equities has over five years of experience in the private lending market.

We reached out to Stratton Equities to get more information about their hard money lending program and here are some highlights:

• Loan amounts from $100,000 up to $5 million
• Investment properties only
• Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed-Use, Office, Retail, Industrial and Warehouse are all ok
• Up to a 75% LTV (loan-to-value)
• Rates start at 7.25%
• Interest only payments
• Loan terms are 9-24 months
• Foreign nationals are eligible
• No prepayment penalty option is available

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

What are the benefits of an Alaska hard money loan?

Property buyers will find a number of advantages associated with hard money loans. One of the most important is that they are available to borrowers and for properties that may not otherwise qualify for a traditional, government-backed loan. There are qualifications and eligibility requirements for hard money loans in Alaska, but those requirements differ from what is expected through a traditional big bank lender. For borrowers, that can prove to be very valuable to them.

Another one of the benefits of hard money loans is that they can often be obtained by the borrower quickly. If there is a valuable piece of property on the market that a borrower wants to purchase, they may not want to wait weeks for a traditional lender to approve the loan, complete inspections, and then start the closing process. With Alaska hard money lenders, the lender works faster and is able to close on the home within a matter of weeks instead of a matter of months. That means that the property could be in the hands of the borrower much sooner.

These loans are very versatile as well. Borrowers can use them to purchase a home that is on the market. They can use it for a fix and a flip type of home, which can be hard to finance with other types of loans. It can also be used for those purchasing rental real estate that they need to obtain and then repair before renting out. In some situations, hard money loans can also be used for commercial real estate development and long-term rentals when the investor is looking for access to a significant amount of money right away.

Overall, a hard money lender in Alaska could be an excellent opportunity to secure funds needed for some of the hardest to finance types of property. For those who are considering a short term loan for any other need, even for construction projects, a hard money loan in Alaska could prove to be a faster, more effective option than other types of loans available like lines of credit or construction loans.

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