What You Need to Know About Hard Money Loans in Texas

Money lending is a difficult business to really understand. Have you been trying desperately to understand all the jargon being used around you when you try to figure out money lending? We are here to help. We understand that money talk is difficult and it can be hard to understand and that can leave you feeling not only confused but upset and overwrought. Here’s what hard money lenders in Texas are all about.

Hard money lending is a unique process because it is real estate backed instead of being

Hard Money Loans Texas can be very lucrative!

based on your income or financial past, so it doesn't matter what your credit looks like to a hard money lender in Texas, that makes no difference. Usually, these loans are short term and tend to range anywhere from six to thirty-six months. A majority of the loans end up being even less time than that.

Usually, hard money lenders in Texas is a loan only for property or real estate investments. That might sound a little limiting to you, but it actually is not. Hard money loans can be used for the purchase of your dream home, for an investment in a “fix and flip” project, or for a residential property investment. These are funded relatively easily and quickly as well. That means that you can get your money and get on with life in a timely manner.

How to snag that Hard Money Lenders in Texas

The hard money lenders in Texas want you to succeed. Just know that with any money lending institution, you need to be careful. You can’t trust anyone so you need to make sure you do all your research and have all your finances in order. You can’t trust just anyone. Know what you are getting yourself into by knowing the estimated value of the purchase you want to make and come up with a ball park figure of what amount of money you think will be lent to you. Do not ask for more money than you actually need. That would be a huge mistake.

Also remember that hard money lenders in Texas are going to charge you a bit more interest than a regular loan, but keep in mind that a hard money loan is a significant risk on their part because they are lending to you without pay stubs, tax information, or any knowledge of your financial past.

If you feel that you may not be able to qualify for a traditional mortgage loan, maybe it is time to look into hard money loans.

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 Make Money With Texas Mortgage Loans

Investing in real estate is a great way to build your investment portfolio and make money. If you have bad credit, you may think that real estate investing is beyond your reach. However, there are several Texas mortgage loans programs geared towards bad credit borrowers. Finding the right program can help you qualify and start building your investment portfolio.

In Texas, it is a buyer’s real estate market. An increase in housing inventory combined with low prices make now the perfect time to purchase a home or investment property. Many sellers are willing to negotiate and buyers can get great deals. In addition, interest rates are low and approval for lender financing is up. The time to buy is now. However, if you have bad credit you may not think it is feasible to purchase a home, especially if you would be doing so as an investment property. This is simply not true. With a variety of loan programs to purchase first homes as well as investment properties, you can find a program that will work for you and your credit score.

Types of Texas Mortgage Loans That Can Help When You Are Eager to Start Investing

One program you will want to consider, particularly for an investment property, is an adjustable rate mortgage or ARM. An ARM is a loan that has a fixed interest rate for 1 to 7 years. The rate is usually quite low, often lower than the prime rate you would get with a traditional mortgage. This will keep your monthly payments low and helps borrowers with higher debt to income ratios or bad credit qualify. Keep in mind that once the loan term ends your rate will go up and so will your monthly payment. An ARM is ideal for an investment property that you are planning on owning for a short term, fixing up, and flipping for a profit.

Another Texas mortgage loans program you may qualify for, even with bad credit, is a hard money loan. A hard money loan is not backed by a bank, but rather a group of investors. Since the loan is not funded by the bank, the merit of the investment property is more important than you credit score. Hard money loans are usually short term loans designed to last from a few months to a few years. Be aware that you will usually pay a higher interest rate with a hard money loan but if the investment is worth it, this is negligible.

A third type of program that can help you qualify for an investment loan with bad credit is an FHA loan. An FHA loan is a loan that is backed by the federal government and you can qualify for the loan with a credit score of 580 and 3.5% of the purchase price down. If your credit is even lower, you can actually still qualify for an FHA loan with a score as low as 500 but will need to put about 10% down. The interest rate is fixed for the life of the loan so your payment will not go up drastically. If you are looking at the home as more of a rental investment (long term) than a short term fix and flip, an FHA loan may be a good option for you.

Other less common types of Texas mortgage loans that can help borrowers with bad credit are rent to own programs and seller financing. These are usually better options for a home that will be your primary residence, rather than an investment property.

Finding a Texas Mortgage Broker is an important first step in purchasing your investment property.

In order to purchase a home with bad credit, it is important to have a mortgage broker that will work for you. Ask your broker about his experience with investment loans as well as bad credit loans. The more experience he has, the more likely he will understand how and when to be aggressive with lenders to help fight for your interests. Many borrowers with bad credit may be automatically turned down for a loan by an automatic underwriting program based solely on their credit score. An experienced broker knows how to get the underwriter to manually review the application and take other factors, like income, investment potential, and savings into account to help outweigh your bad credit.

Stop letting bad credit keep your from investing in real estate. Find a broker today to start having your money work 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

5 Things You Need to Know About a Texas Bridge Loan

A Texas bridge loan is a special type of short term loan that can help you buy a new home. It is important that you know your options and fully understand the terms of your loan to make an informed decision.

A Arizona 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.

A bridge loan can be very beneficial in many ways because it allows you to buy a new home and put yours on the market without any restrictions. When you are living in a home while you are trying to sell it, scheduling showings can be a nightmare, especially if you have pets or kids. It is also difficult to keep your home show ready and leave at a moment’s notice. Many buyers will also have trouble picturing themselves in your home while your stuff is there. A bridge loan can allow you buy another home while yours is still on the market by fronting you the down payment.

An additional benefit of a bridge loan is that it is relatively easy to qualify for. There is not a lot of paperwork and since many borrowers will have a high debt to income ratio because they own two homes for a short period of time, debt and credit scores are not as important as they are in traditional loans.

Important Things to Consider when Thinking About a Texas Bridge Loan

If a Texas bridge loan sounds like it might be a good option for you, it is important to know all of the risks and benefits and know the ins and outs of your loan terms. Make sure you are in the driver’s seat and in control of your loan at all times. Here are a few things to keep in mind.

1.       A Arizona bridge loan may have a high interest rate. Since a bridge loan is a short term loan and is secured by the sale of your current home, the lender is taking a fairly significant risk in extending you the credit. The more risky the loan, the higher the interest rate. Although interest rates do fluctuate, you can expect to pay more than the prime rate and your rate could climb as high as the double digits.

2.       You can avoid paying interest. Although the loan itself has a high interest rate, shopping around for the right loan can help you avoid paying any interest at all. Many bridge loans allow you to skip the first few months of payments. If you can sell your home during this time period, you can pay the loan back before any interest accrues.

3.       There will be fees. A Arizona 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. For most borrowers this is well worth it to get them into their new home sooner rather than later. Also, keep in mind that the fees will vary depending on your lender so shop around.

4.       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.

5.       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.

If a Arizona bridge loan sounds like a good option for you, start looking at your options today!

A Texas mortgage broker or private lender can help you get started on getting your bridge loan. Call our office today to schedule an appointment. 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

  

Types of Bad Credit Mortgage Texas: Hard Money Lending

There are a variety of circumstances that can lead to a low credit score. Learn how you can get a bad credit mortgage Arizona and qualify for a home loan, even if your credit is less than perfect.

Bad credit can make you feel like a failure. Many Americans who have bad credit report feeling alone, miserable, and almost hopeless. There is a false picture of a person with bad credit that paints him as irresponsible, reckless, and even as a thief. This could not be further from the truth. There are a variety of factors that can lead to a lower credit score. Job loss, divorce, a sudden change in income, or even an old credit card you forgot about can cause your credit score to suffer. Recent statistics released from FICO Inc. show that 25% of the 170 million Americans with active credit accounts have a FICO score of less than 600. This is considered a low credit score and if you have a low score, you can have trouble getting credit cards, car loans, and even store credit accounts.

If you are one of the 42.5 million Americans with a low credit score, you probably assume that homeownership is beyond your reach. However, with new bad credit mortgage Arizona programs as well as federal programs, borrowers can qualify with low FICO scores.

As with any mortgage it is important to analyze the risks and benefits of a low credit mortgage. Once you have decided to stop letting your FICO score hold you back, it is important to know your options. Most likely you will not qualify for a bad credit mortgage through a bank, so it is important to find a reputable mortgage broker. A broker has more flexibility in terms of types of loans that can be offered so you are more likely to qualify via a broker than a bank.

There are many types of bad credit mortgages that are offered in Arizona. Many people know about adjustable rate mortgages and FHA loans that are designed for long term homeownership. However, there is a less well known bad credit mortgage Texas called a hard money loan. Rather than the goal being long term homeownership, a hard money loan is designed to be an investment strategy to help borrowers with bad credit make smart real estate investments and turn large profits.

What is a Hard Money Loan?

For many people with bad credit, they assume that real estate investing is out of their reach because a bank will not lend them money for a mortgage. A hard money loan is a type of loan that is designed specifically for real estate investments. It is secured by a mortgage broker but backed by an investor or group of investors instead of a bank. The loan is for a short period of time, usually a few months to about 4 years. The goal of the loan is a true investment, for everyone involved to make money.

In order to secure a hard money loan, you need to work with a mortgage broker. You would determine a property that you wish to purchase that is a sound investment. Typically these are fix and flip type houses that can build equity quickly. Once you have a property in mind, your broker will connect with a hard money investor or investment team. The investors will examine the merit of the property and the money making potential. They will use this information to determine whether or not they want to invest their capital.

Since a hard money loan is backed by investors, they are more likely to give loans to individuals with bad credit. Instead of only looking at numbers, the investors look at the potential for the property to make money and don’t focus solely on the credit score of the borrower. Once the borrower has renovated the property and sells it, the investors make back their money plus a certain amount of interest. The borrower also makes money on the investment so it is a win/win situation.

If a hard money loan sounds like a good investment for you, talk with a mortgage broker.

A hard money loan is a special type of bad credit mortgage Arizona in that it allows individuals with bad credit to make real estate investments. These investments can have high returns and have great money making potential. If you have bad credit but want to invest in real estate, a hard money loan might be a good option for you. Talk with a mortgage broker today to help you secure your first 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

Shopping for Texas Home Loans With Bad Credit

                Why live in Texas? First of all, it is the home of one of the world’s most historic sites, The Alamo. Texas has the Sonoran hotdog (a local favorite) and lots of other tasty Mexican and American foods.

Texas is also a place that is perfect for those who want to live in the Old Wild West. Wine lovers can say goodbye to California for Texas is said to be the “killer wine country”. Many of the American citizens love to visit Texas once in a while to experience all their natural gems, like the beautiful river walk of San Antonio. With Texas's wonderful culture and nature, many have considered moving here. However some willing to buy a house are having problems applying for a loan, because of their bad credit ratings.

                People who have bad credit ratings are those people who did not pay back the money they borrowed in due time or they did not pay back the money loaned at all. They are not automatically given a bad credit rating for missing a payment or being late once or twice. They receive this rating because they continually miss payments for several months. These borrowers should be thankful because of Texas home Loans with bad credit. In short, they allow people with bad credit ratings to loan a home within the county.

                To increase a borrower's chance of obtaining a mortgage, they should consider shopping for Texas home Loans with bad credit. Prospective homeowners should also consider the following factors that could help them improve their chance of receiving a loan [despite bad credit ratings].

• Display other assets- if prospective homeowners do not have a large amount of cash or a large down payment, they could opt to show other financial assets. One example is available life insurance. In other words, buyers can apply for a loan by listing the cash value of their own home loan application. Other retirement accounts can count as well, by listing their current values. Using the assets available strategy will show a lender that the buyer is serious about paying off the loan.
• Give emphasis to job stability- Even with bad credit, new buyers can offset it by highlighting the stability of their long-term work situation. They should not forget to mention any raises they have received, the increase in their cost of living for two years and their annual merit pay. They also should include their income raises over the past years of employment.
• Demonstrate discipline- Borrowers need to prove to their lenders that their bad credit is a thing of the past and they have learned how to save. They could try showing discipline and consistency with their monthly savings, including any contributions that would help to obtain a home loan.
• Increase the down payment- In general, the larger the down payment, the faster the home loan approval will be. It has been a problem for borrowers because most of the time they cannot provide enough money for the down payment and closing costs. If they are having a hard time to come up with the money, they could check if there are any payment assist programs or local municipality programs in their city.
• Consider the amount you can afford- because even though there are real estate brokers who will tell you that can afford more house, you should really start with a size you can afford. First, homebuyers should spend some time browsing a home list in their preferred areas and settle with the thought that you can always move to a larger house later. It is still better to own a home you can afford, than be hit with another bad credit rating and possibly lose the house down the road.

These factors can be a great help for individuals who are looking forward to improve their chance of approval for Texas home Loans with bad credit. Going through the steps to apply for a mortgage loan is worth it if the place you are moving to is Texas. 

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 by Choosing the Right Texas Private Lender for Your Self Employment Home Loan

If you own your own business, you may find that you have trouble getting a home loan due to strict debt to income ratios and other regulations imposed by banks. There are self employment home loans that can make getting a home loan easier. Choosing the right lender or mortgage broker can make all the difference and help make your home ownership dreams a reality.

Owning your own business has many advantages. For one, you get to be your own boss and set your own schedule. You also have the opportunity to do exactly what you want to do and grow your business in a way that makes sense for you and your family. You are not a slave to the time clock and you don’t have to deal with a domineering boss breathing down your neck. You also can take advantage of many tax write offs and can pay yourself what you are worth.

However, there can also be a downside to being self-employed, especially when it comes to qualifying for a home loan. Tax deductions can make it look like you are losing money when in fact your business is quite successful. Business loans or other debt can make your debt to income ratio look very high and having a number of business loans may even end up taking a toll on your credit. Rigid lending standards can cause banks to take one look at your tax returns and send you out the door so fast your head will spin.

This can be very disheartening. You have spent your life building a successful business, but the very elements that make you successful make you look like a lending liability. Even if you have a steady stream of income, it may be difficult to verify using traditional lending standards and the situation may seem hopeless. But, don’t fret. There are many, many options for self employment home loans and many lenders who can help you find the home loan that you need.

4 Benefits of Using a Private Lender foryour Self Employment Home Loan

If you find yourself in the unfortunate situation of being denied by a bank, start thinking about a private lender. A private lender is a mortgage broker or investment firm that has access to private funds and collateral that can be used to fund a self employment home loan. A private lender is licensed by the state that he works in and still must adhere to federal fair lending practices and guidelines. This is good news for you because it provides protection for your investment and recourse if you feel you have been treated unfairly.

There are many benefits to using a private lender compared to a bank. Here are four of the most common benefits that a private lender can offer.

1.       Easier qualification process. Since private loans are funded by investors, there are less stringent qualification requirements. This means that bad credit, high debt to income ratios due to business loans or tax deductions, or even previous foreclosures or business failures matter much less. A private lender is more likely to look at your entire financial pictures as well as the potential to make money on an investment property than a bank is. This makes getting a loan easier. Also, there is a lot less paperwork which can be a huge bonus for the busy business owner.

2.       Faster qualification process. A bank can take 30 to 45 days and in some cases even more to fund a loan. With a private lender, the process can take as little as a week. This is great news if you want to buy a property quickly or want to make your offer stand out in a bidding war. Often sellers will take a lower offer with a faster close time to unload the property quickly.

3.       Investment opportunities. Private lenders and private self employment home loans are often tailored for investment properties. As a business person, you know the value of real estate investing and can take advantage of a private lending firm.

4.       A private lender has access to loans that banks do not. From hard money loans to other private collateral loans, a private lender can find the right loan for you.

Don’t delay, act today!

Find a private mortgage lender to get started on your self employment home loan. 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

  

The Benefits of Using a Texas Private Lender for Your Self Employment Home Loan

 If you are self-employed, it can be tricky to qualify for a home loan due to debt to income ratios and business losses. Using a private lender can make the process easier and has many other benefits when it comes to qualifying for a self employment home loan.

For many Americans, owning their own business is a dream come true. If you are self-employed you enjoy many benefits both financial and otherwise. Most likely you are able to set your own schedule and you answer to yourself. You can work from home or whatever environment you may choose. You can set your own dress code and hours and take time off when you need it. You can also take advantage of many tax deductions to write off most of your business expenses. Everything from large equipment purchases to pens for you home office can be tax deductible which can help you save big come April.

While you may enjoy your tax savings most of the time, it can be a double edged sword, especially when it comes to qualifying for a home loan. Many times, people who are self-employed have tax returns that do not accurately reflect their actual income due to deductions. Sometimes it can even make it look like you lost money when you in fact had a good year. Throw in any debt you may have for business or personal purchases and your debt to income ratio can make you look like a huge liability to a bank.

For these reasons, many business owners find it difficult to secure a traditional mortgage from a bank. However, there are many other options to find a self employment home loan that will work for you. One key to finding a loan is to think outside of the traditional bank or mortgage broker and find a private lender like Level 4 Funding to finance your loan.

Pros and Cons of Using a Private Lender for Your Self Employment Home Loan

For many business owners, a private lender is their best chance of securing a self employment home loan. However, like any major financial decision, there are pros and cons that need to be carefully considered before making a decision.

·      

Pro: A private lender often has a very short approval process. Banks and public lenders can take anywhere from 30 to 45 days (and sometimes more) to approve and fund a loan. If you need a quick loan to buy a property, this can be too long. Also, when it comes to a self employment home loan, traditional banks will likely have issues during underwriting and come back to you several times asking for more paper work, more proof of income, more documentation. A private lender can have you funds in as little as 1-2 weeks with significantly less paperwork.

·       Con: Private loans are usually more of a risk for the lender. As such, you can expect to pay a higher interest rate for the loan.

·       Pro: Easy to qualify. A private mortgage lender has more flexibility than a bank in terms of who they lend money to. Borrowers who have bad credit, a high debt to income ratio, or are looking for a self employment home loan will have an easier time qualifying with a private lender than with a bank.

·      

      Pro: Geared towards investments and investment properties. If you are self employed, you know the benefit of having your money work for you to make more money. Private lenders have short term loans that are geared towards investment properties and fix and flip houses.

Once you evaluate the pros and cons, it is easy to see that in many cases, a private lender is the best option for your self employment home loan. Like all brokers, private lenders have to be licensed and they do have guidelines to follow to protect you and your investment. As long as you know that you will be able to make your monthly payments there is relatively low risk and a high reward for the self employed borrower.

Once you are ready to risk less with the best private lender, call us at Level 4 Funding to start your loan process today.

Stop waiting for a bank to give you the home loan you need. Take matters into your own hands and make your dreams come true 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