What is a Texas Hard Money Loan and Do I Need One?

hard money lender, Texas

Is your credit a little lack-luster? Do you wish you could go back in time before the bad economy? We all kind of do. If you have a property that you are looking to flip or looking to release from foreclosure, then now is the time to get a loan. But what if you can’t go through traditional channels? What if the banks absolutely won’t loan to you? What if you went through the hours of paper work and still didn’t qualify? Then Texas hard money is definitely something for you.

If you want an investor who doesn’t care about your credit score, then look no further. Texas hard money isn’t about your credit score. It’s about saving the property that you want and becoming the proud owner of a revamped house.  You can have the property you want with your Texas hard money loan.

But what kind of Texas hard money loan do you want? There are two different kinds; hard money lender Texas and private money lender Texas.

What’s the difference? Not much, but we can go through it together.

Hard money lender Texas is a group of people who are looking to invest in property. However, a private money lender Texas is one individual who is looking to invest in the property. You might know the private money lender Texas or it might just be a new investor you met who wants to help you out. The only thing that matters is that you trust them.

While these Texas hard money loans do have more interest than regular loans, the turnaround is so quick that you don’t notice is that much. Save the property you want with your private money lender Texas or hard money lender Texas loan. You and your property will be so happy that you did. 

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

How to Know if a Hard Money Lender Texas is Right for Flipping Your Property

Hard money lender Texas

Texas hard money loans are based purely on the value of the house, home, or property that you want to flip or fix up. It’s as simple as that. For every home renovator worried about their credit (so, all of them), know that a hard money Texas loan is definitely the way to go. Private money lenders are definitely the best way to get what you want faster than your traditional bank loans.

Need more convincing? In addition to hard money Texas lenders loaning money based entirely on the value of the home that is being used as collateral, these Texas hard money loans are also insanely easy to qualify for.

Additionally, as you will find out, a hard money lender Texas loan is also the fastest loan you can get. From property appraiser to signing papers to beginning your project, an Arizona hard money loan is the fastest kind of loan you can get, which means that your project gets to start sooner rather than later. Hello, new kitchen! Goodbye loan fears.

Keep in mind, however, that Texas hard money loans are much more expensive than your traditional loan. Meanwhile, as soon as you quickly qualify for your Texas hard money loan, you are basically halfway to starting on your dream home. You can begin paperwork and in far less time than it would take for a traditional loan, you will have a money from a hard money lender Texas.

Texas hard money loans are great when you are flipping a property to create a home property that is worthy of a great owner. That is because when you’re in the property you’ve borrowed against for less time than say, if you were living there, then the added interest rate of 10 to 18 percent from the hard money loan won’t irritate your profit margin that much, so you can still make a fantastic profit.

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

What is Texas Hard Money? Benefits of a Hard Money Loan

What kind of Texas Hard Money do I want?

There are two different kinds of Texas hard money that is available to you. Both are exceptionally similar, but they each have different benefits to the borrower. The two types of Texas hard money are Hard money lender Texas and private money lender Texas. It is easy to get confused by the two, they are both practical kinds of loans, but the following will explain how they are different.

It shouldn't surprise you to find out that hard money lender Texas and private money lender Texas are both based on assets and have more to do with the real estate you want to invest in than with your credit score. These are both also loans that are not bank affiliated, so they are easier to obtain than your traditional bank loan.

However, hard money lender Texas and private money lender Texas do have some differences. 

For example, hard money lender Texas happens to be a group of people, while private money lender Texas is just one individual who gives out the loan. Typically, with a private money lender Texas, you know the person loaning you money, but that isn't always the case with the group of investors in a hard money lender Texas.

Both loans have quick turnaround despite their higher interest rate, but because of this quick turnaround, the interest rate makes little to no difference. The loans are also more flexible than your traditional bank loans, especially when you use a private money lender Texas.

Consider these types of loans as you decide on rehabbing a property. It could make all the difference to your project and stress you out far less in the interim. Consider the flexible and safe Texas hard money loans. Whether you go private money lender Texas or hard money lender Texas, you will be happy with the outcome.

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

Real Estate Investment Opportunities Using Texas Hard Money

The sole purpose of a Texas hard money lender is to provide people with the fastest and easiest access to private money and hard money loan options secured by real estate. In fact, you may even be able to get funding in as little as 5 business days through one of our Texas hard money loan programs. Hard money lenders Texas are equity based lenders who will give you a loan based on the merits of the property you want to buy, not your own personal merits. 

What exactly does that mean to you? It means these hard money lenders Texas provide you hard money regardless of your credit, job history or income, as long as they can see upon evaluation of the property that you will make a profit doing a fix and flip. So does your credit score matter? Yes, it can help you to get a better interest rate, but it won’t be used to determine whether you qualify for a loan. If you need 100% financing so you can get started with no money out of pocket, you may even be able to find a hard money lender in Texas who can help. Some have developed programs that give you access to additional financing options on top of hard money, that can make it possible for you to break into real estate investing with no money of your own.

Texas hard money loans are a fantastic option for those looking to break into the real estate investment market. With short terms, interest only payments, and a loan that is backed by equity vs. credit, they can be the perfect option for many investors. Contact us at Level 4 Funding today to find out all of your Texas hard money options!

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

What Do You Need to Know About Private Money Lenders Texas?

Many first time investors are curious about hard money lenders in Texas. Here I have laid out some of the basic principles about hard money lenders Texas. First of all, you must know what the term "hard money" means. When money is discussed between investors, it is considered to either be "soft" or "hard." Typically, soft money is easier to qualify for and the terms are flexible. Texas hard money, on the other hand, is just the opposite. It is much more restrictive. Not in that it's more difficult to obtain, but the terms are very specific and much stricter. They have to be, because most hard money comes from private individuals with a great deal of money on hand. This is why hard money is also referred to as "private money". The money used for investment purposes comes from people, just like you and I, not a typical lending institution. So their first priority is to protect their investment capital. This is why the terms have to be so strict. If it were your money, you would want the same.

So what are some of the terms of private money lenders Texas ? Obviously it varies from lender to lender. It used to be that private money lenders Texas would lend solely based upon the deal or property at hand. They would only lend up to a certain percentage of the fair market value of the property, that way in the event of default, the hard money lender Texas would profit handsomely if they had to foreclose or sell to an end buyer. Now, you will find that many hard money lenders, if they want to stay in business, require more than just equity to qualify. This is because the laws now are favorable for consumers. Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan.

These regulations can help protect borrowers and lenders to ensure that everyone is happy with the deal. Hard money loans can be a lucrative option for borrowers who want a short term investment property where the goal is to fix and flip for cash, quickly. If a hard money loan sounds like a good option for you, talk with a private lender in Texas 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

Regulations for Texas Hard Money Lenders

You may have heard that hard money lenders Texas do not need a license. But is there any truth to this? It’s true that private money lenders Texas don't need one in the commercial sector. But do hard money lenders Texas need a license to lend for residential properties? Hard money can fall in the gray. The answer will vary depending on the state where the property is located. Although there is grey area, it is always best to find a hard money lender Texas that has a good reputation and is licensed as mortgage brokers. 

If private money lenders Texas lend to a business who fixes up a residential property then it is many times completely valid to consider the loan a commercial loan. That means the commercial loan rules could apply. If hard money lenders Texas lend to an owner occupant for their primary residence they are definitely in the residential space and need to be licensed and also follow all the regulations. Most private money lenders Texas will not lend on residential property that will be owner occupied. That should give you a clue as to what most hard money lenders Texas think about the residential loan market and the regulations. Also, Texas hard money loans tend to carry a higher interest rate and are usually not meant to be a long term mortgage solution. Instead they are a way to purchase a fix and flip or make quick cash by reselling. 

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

A Quick and Easy Guide to Finding the Right Texas Hard Money Loan

A quick and easy guide to finding the correct hard money loan

Hard money loans can be a great way to finance a specific or fun real estate investment but the loan application process can be quite different from traditional bank loans. Many potential hard money lenders Texas aren't prepared to apply for a loan. Don't be one of the unprepared borrowers and you can do that by following these easy, simple steps.

Find the right project. Texas hard money is collateralized with the property in question so finding the right one is very important. A property valued in the right range may not be in a suitable neighborhood. Remember, rule number one is the old real estate standard: location, location, location – even if you flip a mansion, no one wants to live next to a crack house. Hard money lenders want to know that the property and the location are a safe investment.

Also, always have an exit strategy. Hard money loans are typically short term and usually are 1-2 years in length. The lender always wants to know that the borrower has a solid plan for either selling or refinancing the property long before the term is up. Knowing how you plan to repay the loan is a key factor in a hard money lender's decision. If you are doing this all willy- nilly, you’re going to look bad in the eyes of everyone and no one wants that.

Finally, have the proper documents ready. Hard money loans are primarily secured within the property but also knowing about the borrower is very important. You may be asked about credit, income and assets. Like a boy scout, be prepared.

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 Buy a House With Bad Credit

 If you have bad credit you may find it difficult to buy a home. By being proactive and taking certain steps to repair your credit, you can find Texas home loans that will help make your dreams come true.

Bad credit can make getting a car loan, credit card, and even a job difficult. Although you may feel isolated, you are far from alone. According to recent statistics released by FICO Inc., the average credit score is about 670 which is considered a “fair” score. In addition, nearly one quarter of all credit using Americans have poor credit. So, although you may feel alone, there are nearly 42 million Americans who are in the same boat as you. Bad credit can also become a vicious cycle. You need to repair your credit by making on time payments, not one will give you the opportunity to make on time payments so you bad credit stays bad. You may begin to feel that the situation is hopeless.

One way to help rebuild your credit is by purchasing a home and making on time mortgage payments. If you have bad there are a variety of ways and programs to help borrowers with bad credit get Texas home loans. Since the housing crisis of 2008 there has been a rumor that only borrowers with perfect credit can be approved for home loans. However, with banks and lenders relaxing their credit requirements, more home loans are being approved at lower borrower credit scores. Some programs will even approve borrowers with a score as low as 500 as long as the borrower has some cash for a down payment.

If you have bad credit and are thinking about applying for Texas home loans, there are a few steps you can take to help make sure that you will qualify. First, make all of your rent payments on time. 12 months of on time rent payments can help when a lender is trying to decide if you are worth the risk in terms of a mortgage investment. In addition, start saving cash. Money talks, usually louder than credit alone. Having 6 months to a year of living expenses in the bank (including mortgage payments) will make it more likely that a lender will finance your mortgage. In addition, save up for a down payment. 

Types of Arizona Home Loans Available to Borrowers with Bad Credit

 

The type of loan that you will be able to qualify for depends on how low your credit score is. If you have a score of 650 or higher, you have a possibility 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 loans 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 your credit is less than 500 or you don’t have the cash for a down payment or can’t be approved for other reasons, you might want to look into some less common mortgage programs like rent to own, seller financing, or having a cosigner. Just keep in mind that all of these programs do have some inherent risk and you should make sure you are well informed about the loan type going into it. 

Find a mortgage broker to lend a helping hand.

 

A broker can help you start your home ownership journey. Call one today and stop letting bad credit define your home ownership goals.

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