Popular Cities For Lending in Delaware
Popular Cities For Lending in DelawareIn the Delaware real estate market, grabbing properties before your competition is essential for making the best deals. Although real estate investors sometimes go the traditional route and seek bank loans, the process is anything but speedy.
When time is of the essence, waiting for the lengthy process of getting approval is not an option for most investors. Delaware hard money lenders specialize in providing hard money loans which provide quick funds to investors. These loans are for a non owner occupied property or in some cases for business purpose loans.
Delaware Hard Money Lender FAQ’S
Below are some of the most frequently asked questions we get regarding hard money loans and lenders in Delaware.
What Do Delaware Hard Money Lenders Specialize in?
Delaware hard money lenders specialize in providing short-term, creative financing for real estate investors. If you seek a conventional lender to purchase an investment property, your loan request will be based on the property’s value and your assets. Your credit score, job, and finances will be scrutinized intensely. Hard money lenders base their final loan decisions on the after-repair value. The ARV represents the potential value of a property after all repairs have been accomplished.
What are the Benefits of Delaware Hard Money Loans?
Delaware hard money loans offer advantages that traditional banks cannot. Lenders like Acamnet Financial offer a higher level of flexibility than banks. When qualifying for this type of loan, lenders do not delve too deeply into the finances of real estate investors. In most cases, simply present the property and your plans, which saves you the hassle of gathering countless financial documents.
Do Delaware Hard Money Lenders Look at my Credit Score?
One of the greatest benefits of working with Delaware hard money lenders is the lack of credit score requirements. One of the first things a bank does is check your credit score. You can get approved for a hard money loan in Delaware even if you have bad credit or poor credit, bankruptcies, and foreclosures in the past. Delaware Hard money lenders primarily care about the property you are purchasing.
What is the Interest Rate & Points for Hard Money Loans in Delaware?
Interest rates for hard money loans in Delaware are typically higher than traditional bank loans (conventional loans) because of the greater risk lenders must take on when approving loans. When searching for a hard money lender near me in Delaware, you will find average interest rate is between 8%-15%. You should also be aware that lenders sometimes charge points that are meant to offset their administrative costs. Each point represents 1% of the total loan amount. The average points lenders charge is between 1 to 3. Some lenders may charge up to 10 points. These points are due upfront or at closing, depending on the lender.
What Should I Look for in a Delaware Hard Money Lender?
There are many benefits to working with a Delaware hard money lender. You just need to make sure you are working with the right lender. You can rely on Acamnet Financial Group when you need us most. We offer reliability, consistency, experience, and support. As a real estate investor, you know the importance of grabbing the best property deals when they become available.
How can Hard Money Lenders in Delaware Help Me?
Whether you are new to real estate and real estate projects or an old pro, you know having the capital to purchase real estate is essential. Without funds, you will miss out on real estate transactions. When you partner with hard money lenders in Delaware, you will quickly get the money you need without jumping through the hoops of traditional bank lenders.
How do I get a Hard Money Loan in Delaware?
When you want a hard money loan in Delaware, begin by preparing the property information. Location, size, purchase price, after repair value, repair costs, etc. In most cases, the financing will be based on these numbers. Then, apply for a hard money loan in Delaware using this information and supply some financial information. Then, an appraisal will be ordered to assess the loan-to-value ratio, which will influence the loan amount.
How do I Refinance a Delaware Hard Money Loan?
Refinance a Delaware hard money loan will involve moving from a high interest, short term loan to a longer term, usually lower interest rate loan. Typically a conventional type of loan. When refinancing a Delaware hard money loan you will find it will have a more stringent set of guidelines. You will need to have sufficient credit and income qualifications. As the lending landscaping and regulations constantly change, you want to consult a knowledgeable conventional loan expert.
Current Real Estate Trends In Delaware (2024)
Delaware’s real estate market has undergone significant changes over the past few months, affecting buyers and sellers.
June saw a 5% boost in the number of units sold compared to the previous month but a 14% decrease compared to June of the last year.
Additionally, the active inventory of homes in June experienced a 5% decrease compared to last year, making it more difficult for potential buyers to find the property they are looking for.
The median sale price in June rose by 2% compared to the previous year, reaching $381,635.
Homes also stayed on the market for longer, with a 56% increase in days compared to last year.
The months of supply also rose 11% compared to the previous year.
Nevertheless, some buyers are still attracted to the market with beneficial tax policies and decreasing mortgage rates, presenting potential opportunities for sellers.
Housing Market Shift
The Delaware housing market has seen a distinct change, with a drop of 0.14% in the median sale price and a significant decrease of 29.7% in the number of homes sold in April 2023. This could present issues for both buyers and sellers in the current market.
Factors such as increasing mortgage interest rates and low inventory could be to blame. Buyers and sellers must take these matters into account when making decisions.
Navigating the current market can take time and effort. Buyers need to look out for their best interests and for sellers to understand their options. Careful consideration and research are crucial to success in a shifting housing market.
Buyers Have More Power
In Delaware, potential homeowners and real estate investors are finding an excellent opportunity to save on commissions through DE Flat Fee MLS. Home prices are forecasted to drop around 20%, making the current market favorable for buyers. The housing market has slowed from post-pandemic highs, and enticing tax policies are luring buyers.
This is the perfect time for sellers to maximize their savings as they list their homes, and the same goes for buyers who can take advantage of the affordability.
It’s easy to see why buyers have the upper hand regarding Delaware’s real estate market. Slower market conditions, tax incentives, and lower prices give buyers the edge. Sellers can benefit from DE Flat Fee MLS, and buyers can benefit from the increased affordability.
Mortgage Rates Increase
Mortgage rates have seen a considerable jump of 33.13% from May 2022 to May 2023, with the current rate at 6.79%. This has led many buyers to enter the Delaware housing market.
However, there is still a chance of rates going even higher, which could make buying a home much less affordable.
Tracking the changes in mortgage rates is essential, as it can greatly influence the real estate market.
Sources
https://marketminute.longandfoster.com/Market-Minute/DE/Delaware.htm
https://www.houzeo.com/blog/delaware-real-estate-market/
https://www.delawarepublic.org/show/the-green/2023-04-21/examining-delawares-housing-market
All About Delaware
Located on the northeastern portion of the Delmarva Peninsula, Delaware is a U.S. state known for its unique geography and historical significance. Bordered by Maryland, Pennsylvania, New Jersey, and the Atlantic Ocean, Delaware encompasses three counties and combines elements of the Mid-Atlantic and Northeastern regions.
Its geography includes the Delmarva Peninsula, islands in the Delaware River, and the highest elevation in the state, Ebright Azimuth. The state derives its name from Delaware Bay, after Thomas West, 3rd Baron De La Warr. Before European colonization, Delaware was inhabited by Native American tribes such as the Lenape and Nanticoke.
Notably, Delaware played a significant role in the American Revolution and was the first state to ratify the Constitution. Today, Delaware’s economy is influenced by its corporate laws and has a notable presence in the financial, banking, and chemical manufacturing sectors. Additionally, the state is renowned for its beaches, historical sites, and tax-free shopping opportunities.
Delaware Geography
Delaware’s geographical location on the Delmarva Peninsula, between the Atlantic Ocean and the Chesapeake Bay, contributes to its diverse landscape. It encompasses urbanized areas, agricultural regions, and coastal plains. The state is divided into three counties: New Castle, Kent, and Sussex.
New Castle County is more urbanized, while the other two counties are predominantly agricultural. The northern part of the state is part of the Piedmont Plateau, characterized by hills and rolling surfaces. South of the Robert Kirkwood Highway lies the Atlantic Coastal Plain, known for its flat, sandy, and swampy ground.
A ridge along the western boundary of the state separates the watersheds that feed the Delaware River and Bay to the east and the Chesapeake Bay to the west.
This diverse geography sets the stage for exploring Delaware’s etymology and name origin.
Etymology and Name Origin
The origin of the name ‘Delaware’ can be traced back to Delaware Bay, which was named after Thomas West, 3rd Baron De La Warr, giving the state its unique identity. The name ‘De La Warr’ is of Anglo-French origin.
Delaware Bay and the Delaware people derive their names from the same source. Before European colonization, Delaware was inhabited by the Lenape and Nanticoke tribes. The Lenape lived in the northern part of the region, while the Nanticoke occupied the southern Delmarva Peninsula. Other Native American tribes, such as the Kuskarawock and Tockwogh, also resided in the area.
The Lenape had a settled hunting and agricultural society, but many of them were displaced and moved westward due to conflicts and land loss.
Native American Inhabitants
Native American tribes, including the Lenape, Nanticoke, Kuskarawock, and Tockwogh, inhabited the region that is now Delaware before European colonization. The Lenape lived in the northern part of Delaware, while the Nanticoke occupied the southern Delmarva Peninsula. These tribes had established settled hunting and agricultural societies.
The Lenape, in particular, had a well-developed culture and social structure. However, with the arrival of European settlers and the loss of their lands, many Lenape and other tribes were forced to leave the region and move westward. This displacement and conflict with other tribes led to the decline of Native American populations in Delaware.
The arrival of European colonization marked a significant shift in the history of Delaware, as explored in the subsequent section on colonial history.
Colonial History
During the colonial era, European traders and settlers established a presence in the now Delaware region, leading to significant changes in the history and development of the area.
Dutch traders set up a trading post in Delaware in 1631, followed by the establishment of the Swedish trading post and the colony of New Sweden in 1638. However, the Dutch conquered New Sweden in 1655 and incorporated it into New Netherland.
The English then took control of Delaware from the Dutch in 1664. Finally, in 1682, William Penn leased the Lower Counties on the Delaware from the Duke of York.
These colonial powers shaped the early history of Delaware and set the stage for its eventual statehood and economic development.
Statehood and Economy
Statehood for Delaware was achieved when it ratified the Constitution of the United States on December 7, 1787, making it the first state to do so. Delaware’s status as ‘The First State’ is derived from this significant event.
Since then, Delaware has become a de facto onshore corporate haven, attracting numerous businesses and Fortune 500 companies due to its favorable corporate laws. The state’s economy is heavily influenced by its corporate sector, with a strong presence in the financial and banking industries. Additionally, Delaware has a significant concentration of credit card companies.
Agriculture also plays a role in the state’s economy, with a focus on chemical manufacturing industries.
Delaware’s economy continues to evolve and adapt to the changing global landscape, making it an essential player in the business world.