How to Use a Texas Bridge Loan to Make Your Dreams Come True

 If you are trying to buy and sell a home at the same time, a Texas bridge loan can be a valuable tool to have. This type of short term learn can help make sure that you get your dream home with very few risks.

A Texas bridge loan is a specialized short term loan that can be useful for real estate transactions. It is a short term loan that allows you to use the equity in your current home as a down payment on a new home before your current home sells. As the name implies, a Texas bridge loan is designed to “bridge” the gap by giving you funds for a down payment. The loan is paid back with the proceeds from you home sale.

An Arizona bridge loan is a valuable tool because most buyers rely on the sale of their current home to come up with the down payment for their new home, however, it is not always feasible or ideal to close on the current home first. In a perfect world, you close on your home in the morning, have funds available by noon and close on your second home before the business day is over. But it very rarely works this way. More often, you close on your current home and have to find a short term rental for a month or two before you close on a new home. This is not only expensive, but it causes you to have to move twice and you are literally throwing money away by renting.

One solution to the problem is an Texas bridge loan. A bridge loan bridges the gap by lending you the down payment for a new home that you then pay back once your home sells. The bridge loan is secured to the buyer's existing home. The funds from the bridge loan are then used as a down payment on the new home. Bridge loans are gaining in popularity as a down payment option because they offer flexible terms and are relatively easy to qualify for. Also, many lenders will not allow you to take out a home equity loan on a home that is listed for sale, so in many cases a bridge loan is the only option to come up with cash for a down payment.

7 Things to Consider if You are Thinking About a Texas Bridge Loan 

Like any loan, a bridge loan has certain risks and benefits. Knowing all your options and going into it fully informed will help you risk less and benefit more. Here are five important things to keep in mind if you are thinking about getting an Texas bridge loan.

     1.     You will pay a higher interest rate. Like many short term loans, bridge loans have higher interest rates than 30 year loans. You usually have a grace period of 1 to 4 months depending on your loan terms and if you pay the loan back with proceeds from your home sale, you can usually avoid paying a lot of interest.

     2.   Qualification is usually an easy and painless process. Most lenders do not have set FICO scores or debt to income ratios for bridge loans. Instead, qualification is based on a complete picture of your finances and whether it makes sense to purchase a home before you sell your current one.

3.       A bridge loan can save you money. If you wait to purchase your new home until your old home sells, you may end up needing a short term rental. This is literally throwing money down the drain. Getting the right Texas bridge loan and selling your current home quickly can actually save you quite a bit of money.

4.       There will be fees. An Texas bridge loan has several fees associated with it. You will pay an administration fee of about $750 and an appraisal fee on your current home to ensure it is worth what you need to sell it for. In addition, you will pay wire fees, origination fees, and points which will be dependent on the amount of your loan. When all is said and done you will probably end up paying about $2,000 to secure your bridge loan.

5.       You can find your new dream home without the stress of having to sell your existing home first. You don’t have to wait or make unattractive contingency offers. You can purchase your new home immediately which will usually get you a better price and help make sure you get the home you want.

6.       You have to be able to qualify for two mortgages. A bridge loan can help you with a down payment, but you will still need to qualify for two mortgages and be able to make monthly payments on both if push comes to shove. However, most mortgages don’t require a payment for the first month so if you sell your home quickly, you can usually avoid double payments.

7.       A bridge loan can cause stress. If your current home does not sell quickly, you will end up paying the mortgage on it, the mortgage on your new home, and the payment on your bridge loan. Make sure to carefully evaluate your finances to ensure that you can make your payments for a short time if you need to. You can also help eliminate financial stress by pricing your current home to sell quickly.

Once you have evaluated the pros and cons of an Texas bridge loan, contact the financial professionals at Level 4 Funding to get your application started!

The sooner you apply for your bridge loan, the sooner you can get cash in hand for your down payment. Don’t let your dream home slip away because you are waiting for your current home to sell. Find out the benefits of bridge loans today! 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

  

Can Texas Mortgages for Bad Credit Benefit Prime Borrowers?

For some borrowers, Texas mortgages for bad credit programs are the only options they have to purchase a home. However, some of these bad credit loans can benefit traditional borrowers as well.

Sub-prime lending is making a comeback in a big way. With rising interest rates and a large percentage of borrowers with bad credit, many banks and mortgage brokers are back in the business of giving out sub-prime loans. In Texas, mortgages for bad credit borrowers are on the rise with a number of equity firms, private investors, banks, and mortgage brokers giving out loans to sub-prime borrowers.

Some experts are leery of this trend, blaming sub-prime lending practices for the housing collapse in the mid-2000s and the subsequent economic recession. Because of this, restrictive mortgage regulations went into effect which have all but crippled the housing economy. With a decline in housing purchases and virtual shut out for bad credit borrowers, the government has loosened some regulations and in Texas mortgages for bad credit are starting to re-surge. But, it is not only bad credit borrowers who can benefit from sub-prime lending. Many borrowers with excellent credit can still take advantage of bad credit loans to maximize borrowing potential and minimize interest rates.

Types of Sub-Prime Loans in Texas

One type of loan that is available for people with bad credit is an adjustable rate mortgage or ARM. An ARM is offered to subprime borrowers who would not qualify for a traditional loan. It offers a low interest rate at first but then resets to a high interest rate after a specified period, usually 1 to 7 years. Once the rate adjusts your mortgage payment will increase due to the higher interest rate. This can be a good option if you only plan on owning the property short term or if you know you will be able to qualify to refinance your loan at the end of your low rate period. Although an ARM is a type of Texas home loan for bad credit, it can also be beneficial for borrowers with good credit. Specifically, when interest rates are high, an ARM can get you a lower rate and therefore a lower monthly payment. Once the rate resets you can either sell the property for a profit or you can refinance to a traditional mortgage.

A second type of Texas home loans for bad credit that is available is a hard money loan. A hard money loan is secured through a mortgage broker but is backed by investors instead of a bank. This is especially beneficial for people looking to do a fix and flip or short term purchase. Depending on the merit of the property you are purchasing as well as potential for income, investors will often invest capital, even if your credit score is lower than what is ideal. It should be noted that hard money loans are short term loans only. They cannot be used to purchase a home you plan to live in for any significant amount of time. These are designed primarily for real estate investors. A hard money loan is a good option for borrowers with good credit but a high debt to income ratio or who own additional property. Hard money lenders do not have as strict of debt to income ratios as traditional banks.

A third type of loan is a type of FHA loan. An FHA loan is backed by the government and will allow you to borrow about 96.5% of the value of the home you are purchasing. This means that you won’t have to come up with a large chunk for a down payment. In addition, the government backing means that you will be more likely to qualify, even with less than stellar credit. You will pay monthly insurance on your loan. In addition to you principle and interest payments, you will also pay a PMI insurance payment. This will increase the amount of your monthly mortgage payments until you pay off 20% of the loan amount. You can also couple FHA loans with different federal programs that offer down payment assistance or cash back at closing like Home in 5. These programs are constantly evolving and changing, so make sure to talk with a mortgage broker about what you may qualify for. FHA loans are a good loan for prime borrowers who want to keep more cash in their pocket with lower down payments and cash back programs.

Make sure to choose your loan carefully and 

weight the risks and benefits of your options.

The loan types mentioned above are some examples of sub-prime loans that can benefit prime borrowers. It is important to be aware of all risks associated with loans and to know that not all lenders are created equal. There are still predatory firms that will raise interest rates and give out irresponsible and risky loans. Find a licensed mortgage broker and a real estate agent you can trust to help you navigate the world of sub-prime lending. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Trust Deed Investing Texas: What You Need to Know to Get Started

Are you considering diversifying your portfolio but you aren't sure what you should do to spruce it up and make some cash for your wallet? There is a way to do this! You can simply look into trust deed investing Texas.

Texas Mortgage Broker, Hard Money Loans, Texas Home Loans, hard money lender Texas

A great way to get the cash you’re looking for or the kind of portfolio you want is by looking into these kind of investments because they are easy on the investor, but they also always yield some big money, which is nice for the person with the portfolio looking to diversify!

A trust deed investment Texas is a great way to enter the investment world because it is such a low low risk that can get you the best returns out there for an investment like this. For example, you can begin to look into something called non performing notes Texas.

These might have a scary name, but these might be the best things for your pocket because these non performing notes Texas are often sold at low rates that still yield a great return. It doesn't matter if the borrower doesn't pay you back because you always have something with your name on it- it might just be a new property that receive instead of a payment. 

While nobody likes to see their borrowers fail, it does happen, but at least with a trust deed investment Texas that investment doesn't mean you’re left with nothing when it fails, because in a way, it never does fail for you. You can have your investment and your money, too. That’s no problem at all with a trust deed investment Texas.

Look into a trust deed investment Texas today so that you can have the diversified portfolio you always wanted. You’ll be so happy you did. And so will your wallet.

Texas Hard Money

Texas Mortgage Broker

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Texas Home Loans: How to get the Money You Need!

If you’re looking for a hard money lender because your credit isn’t as great as you’d like it to be, then you are in luck because we have what you’re looking for here. As you know if you are

Texas Mortgage Broker Home Loan

on the website, a hard money lender or a private money lender as they are also called, can be the best thing for you and your bank account- especially if your credit isn’t what it should be. No more conforming to the bank standards when you can get the non-traditional loan that you need for your Texas home loan from a private money lender.

You can qualify so much easier for a private money loan than you can a traditional soft money loan. These banks are so aggressive nowadays that it is difficult to get what you need from them. They want to really put you through the ringer when it comes to getting the loan you need for your home. And even then, you might not get it. It’s time to avoid these kind of interactions and get a private money lender to give you the Texas home loan that you need. You won’t have to worry about bad credit or an impending foreclosure. You will just have to worry about getting the money you need and paying off your debts. 

Texas Mortgage Broker, Texas Home Loan, USDA Home Loan

Tell your private money lender what you need and they will work with you far better than a traditional bank officer would. You can have the quality of life that you deserve. Talk to a hard money lender now about the Texas home loan that you need. It might just change the way you begin to think about your home and your money. Bad credit, no credit, or impending foreclosure, you can get the money you need with a hard money lender who wants to help you with your Texas home loan.

  

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Level 4 Funding can Help You get the Texas Home Loan You Want

Get The Home You want with a  Texas Home Loan

Are you looking for the home of your dreams… but also wishing you had the credit to purchase it? Now is your chance to get what you want because there’s a way to do it. You just have to be unconventional! You can get your Texas home loan. There’s a way to get the home you want. You have to talk to your hard money lender about the non traditional Texas home loan they can give you.

We know the economy made a lot of people lose their great credit standing. That was a damn shame. But there’s no use moping about it. You have to get yourself together and talk to a hard money lender about what you can do about it when it comes to getting your home.

Banks are difficult. They are not willing to accept very many people into their tiny world of loan dispersing. They want to keep a lot of the money for themselves because the 21st century has left them out in the cold quite a bit. A lot of banks went under, you might remember, and we had to bail them out. They aren't really looking for that again. They are truly trying to do something different for bank loans so they put you through a lot of different hoops and they make you wait and even then you may not get the Texas home loan that you really want and really need for your house. Don’t give it a second thought. Get the Texas home loan from your hard money lender. You will see how easy it is to get what you need when you don’t have to go through a bank.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

How to Get Texas Home Loans with Rotten Credit

Texas home loans are in high demand as interest rates are dropping and housing inventory is increasing. A mortgage broker can help you choose the best loan for your financial situation and make your homeownership dreams come true.

The real estate market in Texas is booming. With gorgeous spring temperatures, and plenty of ways to beat the summer heat, it is easy to see why. Texas has a lot to offer to individuals and families. Whether you are moving to the Loan Star State for work, the weather, or for all the family friendly activities and destinations, there is something in Texas for everyone.

If you have bad credit, you may think that a move into or around Texas is impossible. You may think that Texas home loans for bad credit don’t exist. This has been a widespread and false rumor since the housing crisis of 2008. Many people believe that it is impossible to get a home loan without perfect credit. In a way, this has become a self-fulfilling prophesy because many individuals and families with bad credit won’t even apply for a loan for fear they will just be turned down by the bank. However, there are many programs in Texas that can help sub-prime borrowers meet eligibility requirements for home loans.

Types of Texas Home Loans

The most common type of Texas home loans is a traditional mortgage. Most people with bad credit automatically assume they cannot qualify for this type of loan. While a traditional mortgage does have the most stringent credit requirements, they are not as high as many people believe. If you have a score of at least 650 you have a chance to qualify for a traditional loan. A traditional loan is a fixed 15 to 30 year loan with payments that will remain roughly the same for the entire loan term. Payments may fluctuate slightly based on property tax amounts but they principal and interest will remain the same. In order to qualify for a traditional loan you will need to put between 5 and 20 percent of the loan amount down.

If your credit score is less than 650, you can still find Texas home loan that you can qualify for. One of the main types of loans that can help sub-prime borrowers is an FHA loan. An FHA loan is a loan that is secured by the federal government. You will pay a fixed rate for principal and interest for a 15 to 30 year loan term. You will also pay mortgage insurance in the amount of 80 to 200 dollars each month, depending on the amount of your loan. You can qualify for an FHA loan with a credit score as low as 500 as long as you have between 3.5 and 10 percent of the loan value to put down.

If you find that you cannot qualify for a traditional loan or an FHA loan, there are some less common programs that may be able to help you buy a home in Texas. One is a rent to own program. When you rent to own, you pay rent that for the first 18-24 months goes towards making a down payment on the home. Your rent payments will be higher than if you were just renting the home but you will be making progress towards owning it. Another way to purchase a home with bad credit is with seller financing. This is most common if the seller owns the home outright or owes a very small amount left on the mortgage. The seller carries the debt for you and you make monthly payments, including interest to the seller. Often you will need to put a large chunk down so that they seller is assured that you have a vested interest in paying the loan in full by the agreed upon time period. Finally, you may also want to have a family member with higher credit cosign for you. This will help you get a loan and be on track to rebuilding your credit. However, be aware that any late payments will also affect the credit of your cosigner.

Regardless of which loan product you choose, a Texas mortgage broker can help you reap the benefits of Texas home loans.

An aggressive broker is key when securing a home loan with bad credit. A licensed broker can negotiate with various lenders to help get them to see you as more than a credit score. In fact, many people who have gotten home loans with bad credit claim that they owe their success to a broker who was working for them. Call a broker today to start the process of owning your own home. You will be glad you did. 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Is there a Home Loan for People with Bad Credit? Does a Texas Bad Credit Mortgage Exist?

Chances are, if you are on this webpage, then you have been thinking about buying a home, but times have been tough. You might be worried about your credit. We all are really. The economy tanked and a lot of us lost the credit we had and found ourselves in situations we really never thought we would be in, but here we are. That’s why the home loan for people with bad credit exists.

The bad credit mortgage loan is here for good people like you who may have been down on their luck for a while, but who are restructuring their lives and want a new home to go with it. Private money lender in Texas wants to help you get back on track, you don’t even need the best credit score. Not even close.

You may be a little confused about what a hard money loan can do for you so allow us to explain; the home loan for people with bad credit is exactly what it sounds like. Private money lenders Arizona want to help you get the house of your dreams with a bad credit mortgage loan. There’s no stressing about your credit score like at banks. You don’t have to stress at all. We just want to see you happy with a new home.

Start thinking about all the amazing times you can have in your new home when you get your home loan for people with bad credit. We are here to help you get back on track the best that we can. Don’t hesitate to get your bad credit mortgage loan today. It could be the best thing you’ve ever done for yourself and your family.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027