Find Out if a Private Money Mortgage is Right for You – And How We Can Help!
Most loans and mortgages are offered by formal financial institutions that more or less operate under an industry standard of requirements and guidelines. While this system works just fine for the majority of borrowers, depending on your personal or financial circumstances, the type of property you are buying, or the real estate goals you have, you may be locked out of traditional loan options.
Enter the private money mortgage, also known as a hard money mortgage. This loan is unique in that it is offered not by the usual financial groups or banks, but by private individuals or organizations who are far less strict in their requirements. In short, this is a loan for those who may otherwise have no other option at this disposal. Hence why Legacy Park Mortgage specializes in this unique and unconventional program, so that our clients have as many options at their disposal as possible.
The Many Benefits of a Private Money Mortgage
Because it is without the stringent standards of conventional lender, the private money mortgage is best known for its versatility and accessibility: financial risk and creditworthiness are rarely a concern for private money lenders. Subsequently, this means the qualification process tends to be far shorter than most other loan types – usually no more than seven to ten business days – making this a good choice for those who want to close on a deal quickly.
But if there is one key word to describe the private money mortgage, it’s this: versatility. The private money mortgage considers all property types, both residential and commercial; can be utilized for purchases, refinances, or cash outs; is available for either investment or owner-occupied properties; and is available even foreign nationals. Typically, you must borrow a minimum of $75,000, but with a 75% maximum loan-to-value ratio, you can qualify despite any issues proving income and/or creditworthiness. –
Interest rates are generally between 8.5% –11%, with terms anywhere from six months to up to three years. Often there will be no need for escrow for taxes and insurance, while pre-payment may be an option depending on the lender. The only catch, so to speak, is that since private money lenders are taking on a risk that most banks won’t, they favor properties that offer a great amount of equity or rehab potential; the better this is, the likelier the terms will be easier.
Is the Private Money Mortgage Right For Me?
If you need money fast – such as to fix-and-flip a property, refinance before a loan becomes due or cash out equity – but cannot qualify for a conventional loan (due to poor credit, minimal job history, or foreign status etc.), the private money mortgage is well worth considering. However, given the potential costs, such a decision is best made with the expertise and guidance of a dedicated mortgage broker like Legacy Park Mortgage. We offer a vast network of dependable private money lenders backed by our knowledge and experience. If you’re in need of reliable funds, contact us at 305-570-2139 or email@example.com to learn how we can help.