Find Out What Matters (and What Doesn't) in Texas Hard Money Loans

What Matters (and what doesn’t) in Texas Hard Money Loans

First and foremost, what matters is that you need to be approved for a loan quickly and easily. That’s the good news. Fortunately for you, there is much more good news that comes when dealing with Texas hard money loans. You need to do your research and find the right hard money lender for you. Obviously, you want to find one with low interest rates and a quick approval time, but that’s not all that matters in Texas hard money loans.

It’s good to know that hard money loans are equity based and are usually approved for an amount somewhere between 60% and 85% of the value of the home property. This is a significant amount of the mortgage and can help you greatly if you cannot get approved by another lender. Texas hard money loans are typically short-term, ranging from 6-36 months, so that’s important to know too.

It matters that you are professional and truly striving to make the payments of a hard money loan. Lenders are taking a significant risk in loaning the money to you because they are only basing their decision on the value of the home.You need to do all that you can to show them you value their business and are willing to hold up your end of the agreement.

What doesn’t matter in a Texas hard money loan

There are other benefits for you in a Texas hard money loan. If you have had trouble getting approved for a loan in the past, it could be due to your inability to pay or prove that you can handle the responsibility. However, if you have turned things around and are ready to take on another financial obligation, you can get approved for a Texas hard money loan quite easily. Lenders do not check your pay stubs, tax information, or even your credit.

So basically, it is quite easy to get approved. If a lender can see that your home or project is worthy of investing in, they will approve you for a loan. Remember though that when you purchase your home, it is then used as collateral for the lender and can be used against you if you do not make your payments.

There are pros and cons in the hard money lending industry, as in any other industry involving money. You might find that interest rates are high, but that eligibility is easy. The approval time for an Texas hard money loan is usually around 24 hours, so the money comes quickly. If you are looking for a way to fund your next home purchase or project, hard money lending could be right for you.

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

The Information You Need About Private Money Lenders, Texas Edition

If you ever thought about getting a Texas Hard Money loan, now is the time to really dig in and get one so you can flip the property you’ve been thinking about for a while. You may be a bit hesitant, but let us assure you that private money lenders Arizona is the way to go when it comes to renovating your property.

Begin researching and snag a private money lenders Texas loan, first by talking to escrow companies. These escrow companies know where the money is. These companies close deals all the time and the money has to come from somewhere, so start to cultivate relationships with the escrow companies of your choice. You can usually get them to tell you which private money lenders Arizona they use and trust.

Then, you want to start to research the closed deals yourself. Private money lenders Texas will have their name recorded on the trust deed. Additionally, you can also call the buy and ask who they used as a private money lender Texas.

While finding a private money lender Texas isn’t the easiest thing in the world, it can be done and you will be so happy.

Remember that with Texas hard money loans you don’t have to worry because hard money lenders Texas base your hard money loan entirely on the value of the property you have. That means it is not based off of the credit you may or may not have. We know things have been rough. Getting a loan shouldn’t be so scary.

However, a word of caution: Before you even begin to think about getting a hard money loan, be realistic about how long you think your project will take. Give yourself enough time to pay off this loan! And don’t be afraid to ask for an extension on your Texas hard money loan if you need it. More often than not, people want to work with you to ensure that things get paid in a timely manner.

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 Hard Money Lenders: How to Get Approved for a Loan

Texas Hard Money Lenders Will Approve YOU for a loan

Credit, income, job history, and assets are usually the only items typical banks and money lenders consider when making the decision about approving or denying a person for a loan. However, what often goes unrecognized is that a few small mishaps can destroy a person’s credit, that job history does not always reflect a person’s ability to pay, and that some people may not have much to show as far as assets go.

That is not the case with Texas hard money lenders. These types of specialized lenders consider and understand the everyday difficulties American people face and they provide easy solutions to tough financial situations. They believe in your dream of owning the perfect home every bit as much as you do. That’s why they help you by providing fast, easy money when purchasing a home. Most of the time, Texas hard money lenders focus mainly on short sales, fix-and-flip projects, and foreclosures.

Getting Approved by Texas Hard Money Lenders

Being approved for a hard money loan is not as monumental of a task as it seems. However, it is important to act like a professional, take the situation seriously, and “sell yourself,” to the lender. It is good to provide your Texas hard money lender with documents such as: a short description of yourself and your intended purchase, a copy of the purchase contract, appraisal estimate, details on inspection, cost of repairs (for fix and flip projects), an outline and breakdown of all costs involved in the purchase, Title Commitment, and photos of the home being purchased.

While maintaining good credit can never hurt a person, it is not necessarily critical to you getting a loan. Some people shy away from hard money loans because they have heard about the high interest rates. However, If you do have good credit, it can help you receive a lower interest rate on your hard money loan. Also, if you try to set your loan for a shorter period (perhaps 6-9 months), your interest rate will be significantly lower.

With hard money loans, you can get a loan regardless of your job history, credit, or current income. They don’t even check your tax returns or pay stubs! Your approval for a loan is mainly equity-based, but don’t underestimate the power of a first impression. If you get approved for a hard money loan, your project could be funded in as little as 24 hours.

Applying for a hard money loan is easy. Just call the company, receive an evaluation of the property, sign documentation, and walk away with your hard money loan. Isn’t it time you considered an Texas hard money lender?

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 Use Texas Hard Money Loans to Make Money: 5 Easy Steps

You may ignore anything that has to do with a loan nowadays because you might think you just don’t have the credit needed for that loan you really want. Moreover, you don’t want to be in any more debt.

However, do you know that you can actually make money with Texas hard money loans? The profit is significant enough to capture your attention, we guarantee it. Don’t believe me? What if I told you that the average profit for one fix and flip project is right around $30,000? It can be done my friend, it can be done.

What are the five steps to Make Money with Texas Hard Money in a fix and flip?

1. First off, find the property that you think will really charm you when it’s all said and done.  Make sure that you do your research. You are going to want to consult a realtor and become an expert yourself. Make sure to constantly gather knowledge on the real estate market and find out how it works so you are always prepared. One of the most important things to know is the ins and outs of real estate in the location you are thinking of investing in. Ideally, there will be a high demand for real estate in that area. Look for a home with room for improvement and potential.

2. Evaluate the property you want. Much like step one, this part can be tough. After you've found a potential property, you need to do a thorough evaluation of the condition and the price. Crunch some numbers and see how things add up.

3. Apply for an Texas hard money loan. This sounds like the scary part but this is actually where things get a little easier. Applying for an Texas hard money loan is simple, and strictly equity-based- your credit will not be checked. Try to get a loan that covers most, if not all, of the property’s listed price. You likely will not have a lot of extra money to throw around on the project, so ask for what you need on a loan.

4. Start your repairs. Congratulations! If you've made it to this step, the hard part is over. It means you have the loan and you have finished most of the paperwork and, if you have a passion for rehabbing properties and homes, this is your time to really show what you can do. Make sure to create a timeline for your contractors and stick to it. Try not to have all home repairs take longer than one month.

5. List the property. The last and final step is fairly easy. Consult an agent, and price it right. Don’t overprice the home because you know how much blood, sweat, and tears went into it—otherwise it will never sell.

Making money with fix and flip projects and Texas hard money is truly an easy and rewarding experience!

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

Risk Less and Gain More with a Texas Hard Money Loan!

It’s true, Texas hard money loans made by private money lenders Texas are actually really easy to obtain and your credit score isn’t even checked in order to do it. No longer do you need to stress about what your number is. There are no number games here! No bank loan required, just a Texas hard money loan is needed so you can start flipping your house.

There’s no need to get upset; you aren’t the only person who hasn’t had a great credit score in a while. However, don’t let that deter you from flipping that house you’ve always wanted to flip. Even if your FICO score isn’t the best, there really isn’t a reason that you should miss out on trying to renovate a house. We are here to tell you that Texas hard money loans are the way to go in order to begin that renovation you’ve always wanted. It really is that simple.

When you decide to go with Texas hard money loans, know that you are getting a super fast loan for the best deal and all without having to fork over lots of bank documents and without having to have the best credit in the world. Plus, unlike a traditional bank loan, private money lenders Texas is fast and allows you to start that renovation much faster than you would with a bank loan.  

If you’re looking for the best way to finance your home renovation, then look no further. Your Texas hard money loan made by private money investors Texas is a great and easy way to get the financing you need to finally begin the renovation project you have been dreaming about for you and your family. Your hard money lender Texas is the best way to get everything you need without worrying about a thing.

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 Qualify for Texas Home Loans with Bad Credit

Subprime mortgages in Texas have been considered a predatory lending practice by many law makers. The facts show otherwise as Arizona home loans with bad credit programs have typically been used by investors as a money making strategy, not by people who have been taken advantage of by banks.)

A subprime mortgage is a lending practice that can benefit borrowers with low credit scores. Typically, subprime mortgages are given to borrowers with a less than stellar credit history or to borrowers with other financial factors that make them too much a liability for a traditional loan. Based on these factors, the borrowers would not qualify for a traditional mortgage so banks give them a subprime loan with a higher than average interest rate. Because subprime borrowers represent a higher risk for the lender, most lenders charge a higher than prime interest rate.

The most common type of subprime mortgages that are offered are adjustable rate mortgages or ARMs. An adjustable rate mortgage initially offers a very low interest rate, usually below the prime rate offered by a traditional loan. For an informed investor who intends to fix and flip or only own a home for a short period of time, an adjustable rate mortgage can be a great investment tool. However, an ARM is somewhat misleading to uninformed borrowers as it initially charges a lower interest rate. After the ARM period the rate adjusts to a significantly higher rate and higher monthly payment. These types of mortgages were given out frequently by banks to un-creditworthy buyers in 2005 and 2006. Once the loan reset to the higher interest rate, many borrowers were unable to afford their new monthly payments and defaulted on their home loans. ARM were largely responsible for the increase of subprime mortgage foreclosure increases in the mid-2000s.

In addition to ARMs, many private equity firms and hedge funds also give subprime loans. Interest rates are usually higher for these loans because the borrowers represent a higher credit risk to the lender. Although there have been some predatory lenders, the majority of these firms want to help create a win-win situation. Investors make money and borrowers are able to purchase homes.

In response to the foreclosure crisis, may law makers want to eliminate Texas home loans with bad credit programs entirely. They cite these types of loans as being predatory lending practices as the interest rates can reach as high as 9% when a traditional loan hovers around 4%. They also claim that these loans are disproportionately given to people who make less than the median level of income and there is also fear that subprime mortgages could hurt minorities or young people.

The Truth About Subprime Home Loan Texas

As stated above, there is concern among law makers that Texas home loans with bad credit are designed by banks to gain the most money from groups who have the least. The foreclosures of the mid-2000s helped fuel this fire. Politicians and loan reform groups make a variety of claims about the unsavory nature of subprime lending in Arizona, however, many of these claims have been proven inaccurate when the numbers are examined.

The first claim by politicians looking to discredit subprime lending in Texas is that it would unfairly discriminate against low income borrowers. This claim is categorically false. In fact, most subprime borrowers in Texas are above the median income line. Most subprime mortgages tend to be second mortgages that are purchased as investment properties. Subprime borrowers also tend to own fewer low value homes than traditional mortgage holders.

A second claim against sub prime mortgages Texas is that subprime loans are unfairly given out to borrowers who are young without a substantial credit history. Subprime mortgages are not given out to mostly young borrowers. In fact, the average age of a borrower for a subprime mortgage was between 35 and 55 years of age. This indicates that subprime mortgages are not being used to penalize borrowers with insufficient credit history due to age.

Finally, another criticism is that minority borrower will be discriminated against and only offered high interest loans. A demographic study indicates that this is untrue. By analyzing zip codes and demographics, it was concluded that subprime mortgages are not more common in zip codes with a Hispanic population concentration.

Subprime mortgages are not being used by banks to unfairly discriminate against borrowers, rather than are a valuable tool for borrowers with low credit scores or as a means to purchase an investment property.

Since subprime mortgages often charge higher interest rates, they have unfortunately been lumped into the same category as title or payday loans. Some politicians see them as predatory practices without having all the facts. Texas home loans with bad credit programs and loans are not a predatory lending practice by banks. Rather they are a tool that can be used for borrowers that would otherwise not qualify for a mortgage. Whether you are purchasing a second home as investment, or buying a home for your family to live in, don’t let a low credit score determine your fate. Contact a local mortgage broker to determine your options and see if a subprime loan is a good option for you.

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 Find a Hard Money Lender Texas

Have you been wondering what a hard money lender Texas and private money lender Texas do? You might have even wondered if they are the same thing. A lot of people use the two terms interchangeably and that can be perfectly find because the two do have quite a bit of similarities, but if you look closely, hard money lender Texas is a little different from private money lender Texas.  Once example of this might be that a private money lender Texas can be anyone. It can be someone that you know or even a complete stranger. It doesn’t matter because if a private money lender Texas wants to give you some Texas hard money, you shouldn’t complain!

On the flip-side, hard money lenders Texas isn’t one individual person; it’s a group of people who usually understand how to be great at being a hard money lender Texas. More often than not this hard money lender Texas group has a long roster of clients that they have assisted throughout the years; helping them purchase the kind of real estate opportunities that they want.

Both Hard money lender Texas and private money lender Texas usually have the experience that you want and need when you are gearing up to purchase some real estate. Your hard money lender Texas or private money lender Texas will help to guide you to the right location, title companies, and even appraiser that is best suited for you and your property. With your hard money lender Texas and your private money lender Texas, you can always feel confident that the job is getting done correctly. 

You get to decide between hard money lender Texas and private money lender Texas to decide which category best fits your needs but it is great to know that either one will help you with your Texas hard money needs.

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

Stated Income Mortgage in Texas

A stated income mortgage can be a helpful tool in qualifying for a mortgage if you are self-employed or have income that is difficult to verify. Learn what a stated income mortgage is and see if one is a good fit for your home loan needs.

In a traditional mortgage qualification process, the borrower is asked to provide a variety of documentation. Key among these documents are income verification documents. These include W-2s, tax returns for two years, pay stubs, and bank statements. Any additional deposits into a bank account that cannot be verified by paystubs must also be accounted for. Basically the financial assets of the borrower are gone over with a fine tooth comb. This system works well for people who hold traditional jobs with stable income. However, for borrowers who are self-employed, investors, or have a different non-traditional income situation, income verification can be almost impossible.

For borrowers who are unable to furnish proof of income, earn money in a non-traditional way, or who may have a higher than permissible debt to income ratio, a Texas stated income mortgage can be a solution. A stated income mortgage is a home loan where the lender does not verify the borrower’s income via W-2’s or tax returns. The borrower is asked to state their income and then taken at their word.

Stated income mortgages have been given a bit of a bad reputation because they are easy to use to commit fraud. One less than flattering nickname for the loans is “liar’s loans.” This nickname came about because a study of IRS tax records found that in nearly 60% of all stated income mortgages the borrower actually made less than he/she declared as income to obtain the loan. Some politicians are trying to limit access to stated income loans based on the assertion that they could be used for fraudulent purposes.

When Does a Stated Income Mortgage Make Sense?

Despite its less than flattering nickname and somewhat checkered past, there are certain situations when a stated income mortgage is the best home loan option. For many borrowers this type of home loan is the only loan that will give them the capital they need to buy the home they can afford. There are a few situations where a stated income mortgage makes sense.

The first case in which a stated income mortgage is a smart choice is self-employment. This is actually the income situation that the mortgage type was designed for. For many small business owners, independent contractors, consultants, and other self-employed business people, it can be difficult to furnish proof of income to the bank’s satisfaction. Income sources may be considered unstable or there may simply not be a traditional W-2 or pay stub that can be provided. A stated income mortgage allows the business owner to state his/her income and qualify for a mortgage based on that statement.

Another case in which a stated income mortgage is a good option, is for someone who makes his or her living from investments. Take a real estate investor who owns multiple properties all with loans. Even if this investor makes $100,000 a year in disposable income and has the mortgage on each property covered by rent, his/her debt to income ratio might be too high on paper to be given an additional home loan. A stated income mortgage accounts for the actual disposable income this individual has to spend each month, rather than just what the financial situation looks like on paper.

A third situation that would benefit from a Texas stated income mortgage would be in the case of a freelancer or consultant. People who are employed in these fields generally tend to work for more than one company. Their work is also often seasonal or may vary from month to month. During the mortgage qualification process, banks look at 2 months of pay stubs. If it is a slow month, the amount of pay may not reflect the actual amount that borrower earned and therefore he/she may not qualify for a high enough amount, if at all. In addition, banks require that a borrower works for a company for a year or more before that income source is considered valid. A freelancer or consultant often works for many different companies but only one or two on a permanent basis. Therefore the actual income of the borrower could be $200,000 but only $50,000 is counted as income by the bank. A stated income mortgage allows the borrower to use their actual income amount to qualify for a mortgage.

If you are in an employment situation where a stated income mortgage makes sense, find a broker to get started.

Most traditional banks do not offer Texas stated income mortgages as they are considered higher risk loans. Brokerage firms and smaller banks often have programs that will work with borrowers who need a stated income mortgage.

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