If you want to become a home owner or investor, but are unable to qualify for traditional lending, hard money is exactly what you need. This explanation of how to choose a commercial hard money lender sensibly and some research can help you achieve your goal.
Eight years ago the market crashed, in part due to irresponsible lending of very large financial institutions. Thanks to this crash, without an excellent credit score it has become virtually impossible for the average consumer to purchase a home or invest in residential property. Even folks with low credit scores can find the right hard money lender, HML, to make their dreams a reality.
This unique type of lender simply identified a need and is capitalizing on the potential profit of filling that need. This is a win win situation, as both the borrower and the lender benefit. This type of lending will provide will provide a short term loan to someone who wants to purchase most types of real estate, residential commercial or land. Once the borrower has established a payment history and earned some equity in the real estate, he or she should be able to refinance to a lower rate mortgage.
The cost of a mortgage is not unreasonable. Shopping your loan around is the best way to determine a reasonable rate for your needs. In the process you will learn the difference between a local lender and a corporate lender and become a smarter consumer.
Whether you are in the market to buy a family home or to acquire a house that needs renovation, then quickly sell it for profit, an HML backed mortgage can finance your dream. The interest rate may be as low as nine percent or as high as eighteen percent. Various factors will contribute to the cost of the loan. If you plan to keep the property for a year or more before selling or refinancing, your rate will be lower. The quality or potential quality of the property may affect the rate.
Look for the HML that fits your needs and vise versa. Local companies may be more flexible than their corporate competitors. The most attractive feature of your loan will it will not require a down payment. Your future equity in your home can serve as a down payment when the time comes to refinance the mortgage.
The high cost of rent may be what keeps people from being able to save for a down payment. Renting has none of the tax benefits of home ownership. Take the time to do your homework to find a reliable lender. Check their business ratings and the comments on social media. Your impossible dream has just become possible.
Eight years ago the market crashed, in part due to irresponsible lending of very large financial institutions. Thanks to this crash, without an excellent credit score it has become virtually impossible for the average consumer to purchase a home or invest in residential property. Even folks with low credit scores can find the right hard money lender, HML, to make their dreams a reality.
This unique type of lender simply identified a need and is capitalizing on the potential profit of filling that need. This is a win win situation, as both the borrower and the lender benefit. This type of lending will provide will provide a short term loan to someone who wants to purchase most types of real estate, residential commercial or land. Once the borrower has established a payment history and earned some equity in the real estate, he or she should be able to refinance to a lower rate mortgage.
The cost of a mortgage is not unreasonable. Shopping your loan around is the best way to determine a reasonable rate for your needs. In the process you will learn the difference between a local lender and a corporate lender and become a smarter consumer.
Whether you are in the market to buy a family home or to acquire a house that needs renovation, then quickly sell it for profit, an HML backed mortgage can finance your dream. The interest rate may be as low as nine percent or as high as eighteen percent. Various factors will contribute to the cost of the loan. If you plan to keep the property for a year or more before selling or refinancing, your rate will be lower. The quality or potential quality of the property may affect the rate.
Look for the HML that fits your needs and vise versa. Local companies may be more flexible than their corporate competitors. The most attractive feature of your loan will it will not require a down payment. Your future equity in your home can serve as a down payment when the time comes to refinance the mortgage.
The high cost of rent may be what keeps people from being able to save for a down payment. Renting has none of the tax benefits of home ownership. Take the time to do your homework to find a reliable lender. Check their business ratings and the comments on social media. Your impossible dream has just become possible.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Commercial Hard Money Loan Lenders | Atlanta, GA He suggests you check out the website iFund International.
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