I’ve talked to so many borrowers that think they cannot qualify for a loan due to their credit or credit history. Typically, when working with conventional mortgage financing, this can be the case, however when you tap into the private money lending arena many times you will be surprised that there are loans out there for you.
It’s a misconception that if you have experienced late payments, collections, previous foreclosure or short sale, and even IRS liens that obtaining a real estate loan is impossible. This may not always be the case when dealing with private money lenders. Every private lender is different, and many will consider providing loans to credit challenged borrowers.
Private money loans are also ideal for real estate investors looking to acquire property. Many times conventional banks will not take on the loan due to the perceived risk. Private money lenders see great opportunities for these loans because they can usually get a higher yield on their return. It’s a win win for both the real estate investor and the private lender.
What is a Private Money Loan?
A private money lender is a non-institutional (non-bank) individual or company that loans money, generally secured by a note and deed of trust, for the purpose of funding a real estate transaction.
Private money loans will usually be a little higher in points and interest rate but if it makes the difference from buying a home or purchasing a great deal on an investment property it can be a means to an end.
If you are looking for a loan for your dream home, your next flix and flip real estate deal, or construction project, contact us for a no obligation loan estimate. We will be able to determine if we can offer you conventional financing or a private money loan based on your situation. Click here a quick quote
or call or text (818) 308-5561 today!