Difficulty of Getting a Hard Money Loan in a Rural Area

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Difficulty of Getting a Hard Money Loan in a Rural Area

Mike Schorah
Rental Property Investor · Member since 2021 · 423 posts · 190 votes

How difficult is it to get a hard money loan for a distressed property in a rural area (let's say with a 400 square mile area county that has a population of 100,000)?

Are there really a ton of distressed properties just waiting to be sold in rural areas because it is difficult to get a hard money loan for a property in a rural area?

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Ned CareyPro Member
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Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
4y
My guess is that it depends on the area. Is there a local hard money lender? A national lender is probably not likely to want to do it. A HML in the general region with experience with rural properties may be willing. 

My suggestion is look for the lender first before tying up a property. Somewhere here on the site I think there is a list of Hard money lenders.
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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    4y
    My guess is that it depends on the area. Is there a local hard money lender? A national lender is probably not likely to want to do it. A HML in the general region with experience with rural properties may be willing. 

    My suggestion is look for the lender first before tying up a property. Somewhere here on the site I think there is a list of Hard money lenders.
    1Reply
  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    4y

    Hard Money? Next to impossible. Lot's of things can be overlooked but not a rural location. It's always a hard NO. 

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  • Sean Thompson
    Boise, ID · Member since 2020 · 68 posts · 52 votes
    4y

    Most nationwide HM lenders advertise that they won't lend in "rural" areas, but they all define what this means differently. I think you should reach out to a few with the location and see what they say. 

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  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    4y

    likely very hard- where is it and  whats  the issue with the proeprty

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