Real Estate Investing Hard Money Loans: Texas

If you have bad credit and are looking for Texas Bad credit home loans, a hard money loan can be a valuable investment tool. Taking advantage of hard money lending can allow bad credit borrowers to take advantage of real estate investment opportunities.

If you have a credit score of 640 or less, chances are that you will be denied a home loan from a traditional bank. For many sub-prime borrowers, the idea of homeownership seems beyond their reach and real estate investing is out of the question. However, there are certain Texas Bad credit home loans that allow borrowers with bad credit to make real estate investments to help build their personal wealth.

One type of real estate investment loan available to bad credit borrowers is a hard money loan. A hard money loan is a type of asset based loan financing that is secured by real property. Hard money loans are issued by private investors or companies that specialize in hard collateral loans. The lender offers short term capital loans to purchase investment properties. The term of a hard money loan is generally no more than two years although it is possible to find hard money loans that have terms of up to 10 years. This type of loan is designed to make money on real estate for both the borrower and the lender. Hard money lenders focus on the value of property being purchased rather than the assets or credit score of the borrower. For this reason a hard money loan is an invaluable opportunity for an investor looking for Texas Bad credit home loans to purchase a property as a short term investment.

Hard money loans are available for all property types including commercial, residential, multi-family, and even land loans. Each lender or group of lenders determines the requirements for what types of loans they will give as well as how much money they will lend. If the lender gives loans on residential properties he/she/they are required to be licensed through the National Mortgage Licensing System (NMLS). In order to sure that the lender you are using meets all requirements, it is best to use a broker or investment team that specializes in hard money lending.

Hard money lending has less regulations that traditional loans so it is a good option for borrowers needing Texas Bad credit home loans due to a low credit score. A hard money lender looks at the merit of the investment, not the credit score of the borrower. If you are obtaining a hard money loan for a residential loan, you will still be required to show proof of income though it is usually less stringent than traditional bank requirements. In addition, the investors in a hard money situation look at the value of the investment, not the credit score of the borrower, making it an ideal loan for a bad credit borrower to purchase a fix and flip and make a profit from buying and selling real estate.

Property Types and Interest Rates

Hard money loans are available for multiple types of property. You can a hard money loan for a residential property, commercial property, multi-family property, and even vacant land. Residential hard money loans are the most highly regulated type of hard money loans. To give residential loans hard money lenders must be licensed and are required to ask for proof of income. Commercial property hard money loans are exempt from these requirements.

Interest rates for hard money loans are usually higher than other loan types. The interest rate is dependent on the lender as well as market conditions. Rates usually hover around 11% but have climbed as high as 21% in the past. The higher interest rates are due to the higher risk assumed by investors in this type of Texas Bad credit home loans program. In the event of default, the lender’s investment is secured by the real estate that the borrower purchased. The lender can sell the property to recoup its funds.

It is important to remember that a hard money loan is designed specifically for real estate investing. The interest rates are too high to make it feasible as an option to own a property for a significant amount of time. Ideally if you purchase a property using a hard money loan you should sell it for a profit within a couple of years. Once you have paid back the loan amount, you get to keep an additional profit.

Talk with a mortgage broker today about hard money loans.

Hard money loans can be a great tool to help borrowers with bad credit take advantage of real estate investment opportunities. It is important to work with a broker experienced in hard money loans and lenders. In addition, you want to make sure to work with a trustworthy real estate agent and accurate appraisal company.

If you are ready to take the next step in growing your personal wealth with real estate investing, don’t let bad credit hold you back. Talk with a mortgage broker about securing a hard money loan today.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (512)-516-1177 Austin Texas | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
111 Congress Ave Suite 400
Austin TX 78701

Texas hard money does not actually require you to sign up with the bank

If you are looking for a way to get the money you need for a property you want to purchase, then Texas hard money might be the right thing for you. Forget the traditional bank loan that can cause such aggravation. You don’t need to wait around for your money or deal with heavy paperwork. You can have your Texas hard money quickly without hassle and without any annoyance that a bank might give you.

As banks tighten up their vaults, customers like you really miss out because these banks aren't willing to take the risk. They want to keep their money, so even if you do get a bank to give you a loan, you may not get the amount you want or even need to make the purchase that you need on the property that you want to either revamp or flat out buy. You shouldn't have to be at the beck and call of the bank, you should be able to get your Texas hard money loan and be on your way.

Texas hard money does not actually require you to sign up with the bank.

An Texas hard money loan is independent of banks and can be distributed by either private moneylender Texas or hard money lender Texas. 

They are both similar kinds of loans with only a few differences. For one, private money lender in Texas is just a one person loan. The person who gives you the loan could be somebody that you know or it might just be a private investor who isn't associated with a bank. Meanwhile, a hard money lender Texas is a group of people who want to make an investment. Whichever you choose, we know that Texas hard money will help you get the property that you want right now.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (512)-516-1177 Austin Texas | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
111 Congress Ave Suite 400
Austin TX 78701

Texas Hard Money Home Loans with Bad Credit

Many families think that home ownership is beyond their reach because they can’t get Texas home Loans with bad credit. However, this is simply not true as there are a variety of programs available to help borrowers with bad credit purchase a home in Texas.

If you have been denied a home loan in the past due to bankruptcy, bad credit, or sub-prime credit, you may think that purchasing a home is out of your reach. Many borrowers don’t know that there are a variety of programs available to them, even if they have less than perfect credit. Don’t let bad credit hold you back from obtaining a new home for your family or as an investment. Learn about your options for purchase and talk with a mortgage broker.

One program that can help individuals looking for Texas home Loans with bad credit qualify to purchase a home is an FHA loan. FHA stands for Federal Housing Administration and this entity gives out a type of government backed loan. Borrowers are only required to make a 3.5% down-payment so it can help keep some cash in your pocket. In addition, the loan is insured by the federal government so banks are more willing to lend to sub-prime borrowers. This insurance will cost you though. Be aware that if you take out an FHA loan, you will be required to pay make PMI payments. These can be anywhere from 80 to over 200 dollars a month depending on the amount of your loan. You will make them until the loan amount that you have is less than 80 percent of your purchase price. The PMI payments are a type of insurance you pay to help secure the investment in case of default.

Another loan type that is available for borrowers in the market for Texas home Loans with bad credit is an adjustable rate mortgage or ARM. An adjustable rate mortgage is a short term mortgage with a term of anywhere from 1 to 7 years. During your initial term the interest rate on your mortgage is very low, usually below the prime rate. This makes your payment relatively low as well. The lower monthly payment allows borrowers with bad credit to qualify when they may not be able to for a traditional 30 year loan. After the initial term of you loan, the interest rate resets and your payment may be higher. This can be a good option for someone who is on the road to repairing his credit and will be able to refinance to a 30 year mortgage at the end of the adjustable rate term. One thing to keep in mind with an ARM is that they require a 10% down-payment. This helps ensure that the property value will not drop significantly below the loan amount.

A final type of program that a borrower in Texas with bad credit might consider is a hard money loan. A hard money loan is designed as an investment strategy and isn’t a good option for owning a home you intend to live in long term. A hard money loan is backed by a group of investors, rather than a bank. The investors will look at your property purchase as well as renovation plans to determine if the loan is a good investment. If you have bad credit they are more likely than a bank to look past your credit score if you have a sound investment idea. Hard money loans are short term loans primarily designed to fix and flip a property for a profit.

The Truth about Bad Credit Mortgages

A bad credit score in terms of obtaining a home loan is classified to be at or below about 640, but this has varied with time and location. However, according to national credit bureaus, the average American’s credit score is around 678, meaning that most people don’t have perfect credit. If you have bad credit, there are a number of events that could have gotten you there that are beyond your control. Divorce, job loss, inability to make mortgage payments due to an over-inflated housing market, and the recent recession are all factors that have negatively impacted may people’s credit scores.

If you are looking for Texas home Loans with bad credit you are not alone. Approximately 42 million Americans have a sub-prime credit score. Don’t let your bad credit keep you from owning a home when there are so many bad credit loan programs available to Texas residents.

If you want to take control of your home ownership or real estate investment dreams, stop letting credit hold you back.

Call a licensed Texas mortgage broker today. A broker can discuss your options regarding Texas home Loans with bad credit and help you find the loan to best fit your needs. Stop waiting, call today!

Dennis Dahlberg Broker/RI/CEO/MLO

Level 4 Funding LLC 
Tel:  (512)-516-1177 
Austin Texas | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 105
7378 111 Congress Ave Suite 400 Austin TX 78701