Nowadays builders or individuals prefer to use private construction loans rather than traditional construction loans for many different reasons. The main reason is the ability of the private lender to fund the loan quickly and that’s why private construction loans have been become faster and easier alternative for obtaining financing for the construction of a residential or commercial property.
Here are the more advantages of seeking private construction loans:
1) You can apply for construction loans on almost any type of property including single family residential, multi-family residential, commercial, land, and industrial.
2) There are less paper work required in private construction loans, while in traditional construction loans you will be asked to provide lots of papers with income history to proof your ability for your required construction loan.
3) Private construction loans are easy to qualify because private money lenders are mostly concerned about the underlying value of real estate security and ability to repay with credit.
4) You can apply for private construction loans with low credit score because you have sufficient equity in the property that usually overcome all credit issues, major or minor.
5) Private construction loans are more faster than traditional loans and it’s big advantage for borrowers. Traditional lenders such as banks can take 50-60 days to fund a construction loan, while private lenders can fund within couple of days or a week.
6) You are able to borrow more money from the private lender rather than traditional banks and therefore you have less of own capital invested in the property.
7) There are more privacy in private construction loans than institutional mortgage loans. You can keep your financial ore personal information from others because the private lenders don’t share your information anywhere.
Private construction loans offer a greater flexibility than institutional financing. You can consider for private construction loans to fund your projects quickly because the benefits of getting a loan funded quickly and being able to obtain financing when all the banks have said “No” will far outweigh the extra cost.
Magna Capital Group, Inc. is a private money lender in Los Angeles, California with over 30 years of experience. For more information about construction loans call (323) 655-6888 or email firstname.lastname@example.org.