How to Use Texas Bridge Loans to Benefit Your Small Business

Texas bridge loans are gaining popularity in the housing market as a way to bridge the down payment gap and allow buyers to purchase a new home before selling their current home. They are also a valuable tool for small business owners to get cash quickly based on business collateral and upcoming deals.

Texas bridge loans are short term loans that are designed to bridge the gap between needing liquid cash and a future investment paying off. The most common use of Texas bridge loans are during the home buying process to bridge the gap between needing a down payment for a new home and selling a current home. The bridge loan is secured to the original home, the one that's on the market. The funds from that loan are used as the down payment for the mortgage on the new home. 

There are no strict guidelines when it comes to Texas bridge loans so credit score and debt to income ratio are not usually factors that will automatically disqualify you. This is good news for borrowers with less than stellar credit or who may have a high debt to income ratio once they purchase their new home. Instead, bridge loans are based on a few different factors, including how likely it is that you will sell your current home quickly, and whether or not you can make both mortgage payments for a short time if it becomes necessary. If you default on a bridge loan, the lender has recourse to get their money back using the property you have on the market because it is the one that secured the loan.

A bridge loan can be a good option for individual borrowers who want to purchase their next dream home but have not sold their current home. A bridge loan usually has a higher interest rate but certain loans allow you to skip payments, making it unlikely that you will have to pay any of the interest as long as you sell your home quickly. A bridge loan also allows you to put your home on the market quickly and without any schedule restrictions. You can even stage it to make it sell more quickly. A vacant home will usually sell more quickly and for top dollar so a bridge loan can help you earn more money on your home sale.

How to Use Texas Bridge Loans as a Business Owner

A less common but still beneficial use of Texas bridge loans is to help your small business when you are strapped for cash. Sooner or later most business experience a cash flow issue. A bridge loan can help "bridge" the gap between today's need for immediate cash to pay bills and the final closing of a pending investment deal or long-term financing package.

If you find that you need some immediate cash before a big deal pays out, a bridge loan can be a good solution for your business. In order to secure the loan you will need to prove your ability to pay the loan back. A few ways to do that is through:

·       Earnings. It is possible that a lender may be willing to extend a bridge loan on the basis of earnings alone. You will need to have a stellar credit history, a consistent track record of making profits, and strong sales to show you can repay the loan in a short amount of time. Unless you are able to fulfill all of these requirements, you will need to find another way to obtain financing. ·       Collateral. If your earnings aren’t up to par, you can use business assets as collateral to obtain a bridge loan. Equipment, real estate, and other capital assets can all be used to secure a bridge loan. Contact a broker or investment professional to get started on finding the best bridge loan for your business today! A broker can help you navigate the ins and outs of Texas bridge loans whether you need one for business or real estate. Having the right financial professional by your side can help you risk less and benefit more. You can get the cash you need and help protect your current assets. Call our office today for more information on   Texas bridge 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

  

Texas Bad Credit Mortgage Lenders: Risk Less With a Qualified Lender

If you have bad credit and want to purchase a home, you will find yourself looking for Texas bad credit home mortgage lenders and banks that specialize in bad credit loans. There are a number of types of lenders as well as loans that can help individuals and families find the right home loan. With every loan product there is some risk but finding the right lender can help minimize investment risks.

If you have bad credit and want to buy a home, you may think it is an impossible goal. Bad credit can make you feel isolated and alone. A FICO score of less than 620 gives you a label of a “sub-prime” borrower with rotten credit. Banks and credit companies may label you as “irresponsible” or “too risky” of an investment. Although this may make you feel alone, rest assured that there are many Americans in the same position as you. The average credit score in the United States is 640, meaning that most borrowers have less than perfect credit. In addition, nearly one quarter of all credit using Americans are classified as sub-prime borrowers. If you have bad credit, it is possible to secure a home loan, you just have to find the right lender.

With many Americans falling into the “fair” or “poor” credit classifications, there are many Texas bad credit home mortgage lenders that can help sub-prime borrowers secure a home loan to purchase a residence or investment property. If you are searching for a bad credit home loan, it is important to know all of your options as far as lender types and institutions. If you have bad credit, you may end up paying higher interest rates and could end up with a more risky loan type. It is important to find a lender you trust to help minimize the risk associated with many bad credit loans.

Types of Texas Home Loan Lenders to Help Make You Home ownership Dreams Come True

The most common type of lender is a traditional bank. A bank gives mortgages loans and uses its own criteria along with federal guidelines to determine if a borrower has the FICO score and debt to income ratio necessary to qualify for a home loan. The bank uses market conditions to set interest rates and only offers their own interest rates and loans. Although a bank does have some options for bad credit borrowers, it is usually the entity that turns down sub-prime borrowers. It is not ideal as far as Texas bad credit mortgage lenders go because it has strict guidelines regarding credit scores as well as income qualifications.

Another common type of lender is a Texas Mortgage Broker. A mortgage broker is an individual or firm who operates under a state license to help individuals qualify for home mortgages. Like a bank, you can get multiple loan types but, a mortgage broker is not locked into one interest rate or one lender. The broker or broker company will basically shop loans for the borrower to find the best interest rate and loan terms based on current market conditions. In addition, a mortgage broker can find loans that banks may not be able to give because the borrower or loan type is too “risky” for a traditional lending institution. This makes a mortgage broker a better choice for borrowers with bad credit.

A less common type of lender is a private investment firm. These private investment firms are run by a licensed broker who is up to date on mortgage and real estate laws, programs, and terms. The loans are funded by private investors rather than a bank. As a group of private investors, these types of lenders are more likely to look at the merit of the property as well as the potential to make money as compared to exclusively the credit score of the borrower. This makes them a good option for Texas bad credit mortgage lenders. One example of a private mortgage investor is a company like Level 4 Funding which is run by a licensed financial professional. This is an important characteristic to look for to make sure that you are working with a legitimate firm that will help minimize your financial risk. If you want to look into private mortgage investors, a mortgage broker can help you find a good company, but most likely you will have to ask for it. In addition, you can ask an investment banker or realtor to point you in the right direction.

Texas Bad Credit Home Mortgage Lenders Are the Real Deal

The bank is not the only place to get a home loan. If you have been turned away by a bank due to bad credit, there are other options. Make sure to do your homework and thoroughly check credentials but once you find a lender you can trust, they can help you find many different options to lead you to homeownership. 

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

Benefits of a Private Lender to Find a Home Loan for People with Bad Credit

If you have ever even thought about buying your home, but you’ve been too worried about your credit score, do not fear. There is a way to buy your home without a great credit score. Private money lenders Texas want to give you the home loan for people with bad credit so that you can get your life together again and live in the home you deserve to live in.

There is a way to bypass your credit score and get the bad credit mortgage loan you need to get the home of your dreams. Banks can be awful and not at all forgiving. If you think banks are the only way you can get your new home, you are wrong. Private money lenders Arizona want to give you the home you deserve even with the credit you have right now.

We know the economy really sucked the life out of a lot of people’s credit scores, but you can stop worrying that your life will never be the same. You can still have the home you want when you get your bad credit mortgage loan. You can get your life together again and have the option of choosing where you want to live because you can get a home loan for people with bad credit from private money lenders Texas without any hassle and without any worrying and without all the paperwork that comes from dealing with a bank who might not give you your money anyway!

If you’ve been nervous about applying for a home loan because of your credit, you don’t need to be anymore because home loans for people with bad credit do exist and we want to give it to you so that you can be happy in the house of your dreams with your family again.

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 to Consider if You Need a Texas Self Employment Home Loan

If you are self-employed, you may have difficulty qualifying for a traditional mortgage. However, don’t be disheartened, there are many Texas self-employment home loan options that can help you find the loan you need to buy the home you deserve.

There are many perks to being self-employed. You get to be your own boss, decide your own hours, create your own dress code, and in many cases, answer only to yourself. There are also a host of legitimate tax write offs that can make owning your own business more lucrative than punching a time clock. Everything from home office space to computers to office supplies and sometimes even meals are tax deductible. This can greatly lower your tax burden and help you keep more of your own hard earned money.

However, while many of these tax deductions can be huge benefits come tax time, they can also make it difficult to qualify for a home mortgage. For many business owners, there taxable income and what they actually make can be very different, with the amount that is taxable being relatively low. In some cases, business deductions may actually make it look like your business is in the red when in reality you are making a comfortable income. When you go to buy a home or investment property, this can become a big liability. Many traditional banks will look at your tax returns and give you a loan that is significantly smaller than what you need or can afford. Or, even worse, you may be denied a loan altogether based on your tax returns.

For many business owners, this can be a discouraging experience. You spent years of your life building your business and your personal brand, only to be told that it can actually be a liability. Do not lose hope. While many traditional banks may have their hands tied, there are several Texas self employment home loan options and programs that can help you get the home loan you need.

How to Get a Texas self employment home loan

 If you find yourself in the situation of needing a non-conventional loan due to your self employment status, you need to get organized and find the right company to help you secure your loan. Here are five things to consider when you are in the market for a Texas self employment home loan.

1. Find a mortgage broker and private lending company. Banks are hard to deal with. A mortgage broker will work for you to find the loan that you deserve. A mortgage broker can help you even when a bank has already said no because he has access to multiple lending institutions and loan types whereas a bank can only give out its own loans. A private lending company can also be useful because they can give private investments that banks are not able to offer.
2. Get your financial ducks in a row. Make sure you keep meticulous records and inventory to give a clear picture of what your cash flow looks like.
3. Consider separating your business and personal finances. This way even if your business is in the red due to expenses, your personal income is intact. Pay yourself like you would any other employee. This may mean that you end up paying more in social security taxes or personal income taxes, but may end up being worth it.
4. Look into alternative loan types. Hard money loans, adjustable rate mortgages, FHA loans, and private capital loans can all be good options for Texas self employment home loans.
5. Be persistent. You may hear no a few times before you hear yes. Keep trying. The right loan is out there.

When you are ready to take the plunge and learn the benefits of a Texas self employmenthome loan, call us at Level 4 Funding to get the process started.

Our knowledgeable and friendly staff can help you every step of the way. You will be glad you called. We look forward to the day the title company hands you your keys to your new home.

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 Mortgage Broker vs. Bank: What are the Benefits of a Broker?

Trust Deed Investing, Texas Mortgage Broker

If you’re not what they would call “real estate savvy,” you probably don’t even know the difference between different types of home loans and the people and institutions that offer them. Not to worry. You’re starting at a good place. Here are a few differences between Texas mortgage brokers and banks and the services they can offer to you in your time of need.

1. Texas Mortgage Brokers know the ins and outs of the home market. Banks know how to do loans. Both of these can be advantageous, but ultimately, you want someone who knows about a broader scope than just the financial part of things. Your broker can tell you about resale value, neighborhoods, etc.

2. Your Texas Mortgage broker will shop around and compare rates. Your bank will not. Your bank is going to give you the rate they offer—which makes sense…why would they shop around for you? Brokers do a lot of comparing and contrasting to bring you the best deals.

3. Sometimes brokers require extra fees. Sometimes the lender pays these fees, but sometimes the borrower has to. Watch out for this. The bank won’t typically charge you any other fees for their services (that’s all wrapped into the loan), but sometimes brokers will.

How Do I Know Which Texas Mortgage Broker is Best For Me?

Texas Mortgage Broker Home Loan

Simply put, do your research. Really, you can’t just walk into this blindly…you need to find the right Arizona mortgage broker to help you in your specific and unique situation. You have a different knowledge base, financial circumstance, and desire for the home you are looking to buy. You need to find a broker who is on the same page as you.

Weigh the pros and cons of getting a Texas mortgage broker instead of going directly to a bank for your home loan.

Brokers aren't right for every situation, and neither are banks. Find a broker you can relate to, that takes an interest in your situation, and most importantly, is experienced enough to know the market and get you the absolute best value and deal on your home. What are you waiting for? Find the Texas mortgage broker who is right for you 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

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

Want to Renovate Your Home? Use a Texas Hard Money Loan!

Hard Money Loan Texas

You may have been wanting to renovate homes for a while, but perhaps the economy has set you back and now your credit score isn’t what you want it to be. You don’t have to worry about that anymore. There’s a way to flip your house or renovate without being worried.

With an Texas hard money loan, you don’t need to be worried about your credit anymore. It doesn’t matter what your score looks like, you can create your dream home or flip your property without all the hassles of your traditional loan.

Moreover, private money lenders Texas is certainly one of the quickest ways to get your loan. From paperwork to qualifying to getting the money you need; things go quickly and you can be on your way to flipping and renovating in no time with your hard money lender Arizona loan.

It’s so simple. No need to worry about your FICO score or what questions will be asked. If you’re ready to get started renovating, then you’re ready to start talking about your hard money lender Texas loan. Get started on your project as fast as the paper work is done. Don’t worry anymore what your credit score should be. You can still do everything you wanted to do with your hard money Texas loan and you don’t need a a bank in order to do it.

Your hard money lenders Texas loan is going to be faster than your traditional loan and you’ll be on your way to finishing your project in no time.

If you can invest in all-cash, then do that, but the next best thing is definitely a hard money lender Texas loan that can be taken out in order to fix up and renovate everything you always wanted to do without agonizing over a traditional 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