In a time of strict lending requirements and recovering credit, many people are having trouble qualifying for a traditional mortgage. Have you exhausted your options in trying to find a lender willing to take a chance? American Equity Funding understands the frustration of being disapproved time and time again and considering a private mortgage investor may save the day!
Private mortgage investors have separate money funds known as hard money and are willing to loan money for a specific property. In return, unlike conventional mortgages, a quicker payback period is required. The following demonstrates some valuable reasons why a private mortgage investor could prove beneficial:
Many people were affected by the mortgage market during the 2000s and as a result, their credit is still recovering. This means it is currently hard to qualify for traditional mortgages as well as a lot of disapprovals and discouragement for potential home buyers. Sound familiar? Fortunately, most private mortgage loans have an easy qualification process. Get the loan you deserve, even with poor credit.
Some consumers may view the shorter repayment period expected by private mortgage investors as a con. However, these loans work great for those in the business of buying and flipping vacant or vandalized houses for resell. If a property is being flipped rather quickly, then it won’t be stressful to adhere to the payback policy. In these cases, an easy short term loan can be acquired without the headache of a traditional mortgage.
Fixer Upper Homes
Regardless of great credit scores, banks usually do not wish to take the risks involved with providing loans for homes that need extensive renovations. In these instances, hard money obtainable through a private lender may just be what is needed to turn a fixer upper into a dream home!
Concise Approval Process
No one wants to wait a month or more for a loan approval yet that is precisely what is often encountered with a conventional loan. For many borrowers, the higher interest rate on private loans is a worthwhile trade-off to receive hard money in a timely manner. This is particularly important for home buyers that find the perfect home but risk losing it to the market.
Private Mortgage Investor
Could you benefit from a private mortgage investor? If so, please contact American Equity Funding. We would love to discuss your options and establish a plan in your best interests!