How Hard Money Lenders in Texas are Helping When Banks Fail

Many people, including real estate investors, often think that a property can only be purchased with money they have in the bank, or through a mortgage loan borrowed from a bank. Realistically, there are many paths to home ownership, and the easiest is often through hard money lenders in Texas.

Everybody needs a place to live, but the traditional system makes it impossible to buy a home, or even rent one, when there’s a blip in your history. Unfortunately, this is the very real situation many Americans face. The economic recession hurt almost everyone’s credit, and has left so many families without housing options, even years after the crisis.

Despite the fact that the nation is still recovering, banks look at all sorts of things, including your credit score, previous bankruptcies, and employment history. If you don’t make the cut, or they think you’re too much of a risk, they refuse to provide a mortgage. Banks will even deny you if your credit is fine, but you happen to be applying at the same time as others with higher scores.

The Urban Institute examines issues like this, and has a specific focus on social and economic policies. The group has been actively researching since the 1960s, and in 2013 they released a huge bombshell. Banks have historically claimed that they only deny about 14% of applications, but the Urban Institute leveled the playing field by eliminating those with perfect or near-perfect credit from the calculations. In doing so, they discovered that the rate of denials is triple the amount banks claim for those with less than perfect credit. Considering that only 0.5% of us may ever achieve a perfect rating, most of us fall into a bracket with a 43% denial rate, which is why hard money lenders in Texas are incredibly popular.

Hard Money Lenders in Texas Give that 43% a Successful Path to Home Ownership

Banks have many rules and restrictions on who they’ll lend to, but when you borrow from hard moneylenders in Texas, the money and the decision are handed down by one person, or a small group of people. This method of lending isn’t restricted by the same guidelines and policies, because the money that goes to fund the purchase of the home comes from sources like personal funds and retirement accounts. Instead of focusing on an individual’s history, the decision on the amount of money needed and the value of the property or assets.

Depending on eligibility, 100% of the cost of your home can be funded through hard money lenders in Texas.

Unlike conventional mortgages, which usually require a down payment, hard money lenders in Texas may be able to give you a loan for the full purchase price of the property you want. This means that it’s much easier to buy a home, and it’s significantly easier than trying to qualify with a bank. It’s worth noting that the people who loan the funds are investors, and they want you to succeed, but they’re also loaning out their personal funds, which means that it can cost a little more. For this reason, many people utilize this option to purchase a home initially, and then secure a traditional mortgage when they can qualify for one at a later date. The additional step is generally of little concern to home buyers, because it enables them to have the keys to their very own home long before it could happen by other means.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Arizona Tel:  (623) 582-4444 
Texas Tel:     (512) 516-1177 
dennis@level4funding.com
www.Level4Funding.com

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

  

About the author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true.

Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.