CALL US AT (310) 734 4044

Top 4 Advantages of Private Mortgage Loans

Private money loans are also known as hard money and it usually comes from private investors or private lending company such as Magna Capital Group, Inc who offers loan to home buyers to purchase a specific property. The problem for most borrowers in recent years is the strict lending requirements imposed by traditional lenders. So, if you’re having trouble qualifying for a conventional mortgage loan, a private mortgage loan would be the best option for you.

Why Private Mortgage Loans?

You would use a private mortgage under any of the following circumstances:

  • You want to buy an unconventional property that a prime lender or bank won’t finance.
  • You need fund quickly and don’t want to wait for a long approval process.
  • The cause of your bad credit history, you are being turned down by conventional lenders.
  • You only need a short term loan.
  • You have non-confirmable income that is preventing you from getting a traditional mortgage loan.

Here are the top 4 advantages of private mortgage loans:

1. Easy to qualify:

Private mortgage loans are easy to qualify than traditional mortgage loans. If you have less than the perfect credit score or cannot provide proof of your steady income, private mortgage loans could be a great option for you. A hard money loan is not “person” focused, it’s “property” focused. So, a person with poor credit can also obtain a hard money loan if the project shows a likely profit.

2. Great for Flippers:

Private mortgage loans are best fit for flippers. If you plan to sell or “flip” the house within a short time-frame, or want to be able to qualify for a conventional refinance within a few months after acquiring the property, you might consider such a short-term loan. Flippers use private mortgage loans to make extensive renovations in a short time period to boost the value of their home as it helps them to sell or refinance the property fairly quickly.

3. Geared toward ‘fixer-upper’ properties:

A damaged home cannot qualify for the conventional mortgages, it doesn’t matter that how good the borrower’s credit is. In this case, private money can play an important role for you. A private money lender can provide financing to get the house in sellable condition, and then “flip” the house.

4. Short Approval Process:

Private money lenders don’t need a long drawn-out loan process like a conventional mortgage does. The approval process for private mortgage loans often takes just a couple of weeks, as opposed, it takes 30 to 45 days for a conventional loan. Getting a loan with quick approval is a great advantage for many borrowers as they believe quick funding is a good trade-off for higher interest rates.

The Bottom Line

If you have a house that you want to rehab, and you believe that you could improve it enough to boost its worth in a short period of time that would allow you to pay off a private loan and replace it with a conventional refinance or sale, then getting a private mortgage loan is a viable option for you.

Magna Capital Group, Inc is a well-known and reliable private hard money lender in California, USA. We provide the best and flexible mortgage loan option that suits your real estate needs. You can get benefits of our wide range of loan options such as hard money loan programs, residential loans as well as commercial loans.

So what are you waiting? just grab the opportunity and fulfill your all kind of financial needs with Magna Capital Group, Inc. Call (310) 734 4044 or Email us at or visit our website

To learn more about our financing solutions for residential and commercial properties, please call us at (310) 734-4044 or visit us at

(No Ratings Yet)

Join our Team
Magna Capital Group, Inc is actively seeking for self-motivated, driven loan officers to become a part of our successful and growing... Read More
About Us
The principal of the company has over 30 years of experience in the industry. Our mission is to treat our valued clients with honesty... Read More
Magna Capital Group, Inc., Real Estate, Los Angeles, CA
Accredited Real Estate Services, Magna has 30+ years of combined experience in the Real Estate & Financial Services business. Read More
Magna Capital Group, Inc is a full service real estate and financial services company. We provide specialized services to our clients... Read More
Mortgage Rates
Current Mortgage Rates Current Mortgage Rates Get Widgets

Real Estate Most Recent News

Zell Is Cautious on Real Estate

Sam Zell gained the nickname "the grave dancer" in the early 1990s for buying beaten-down real-estate properties and riding them to huge recoveries. During the recent downturn, he rarely has made it to the funeral.

Standard Deviation in Manhattan

The owners of the Standard Hotel have resisted unsolicited offers for the trendy hotel. But now they have decided to put it up for sale.

Blackstone Revisits Hilton Debt Deal

As Blackstone Group prepares to return Hilton Hotels to the public market, it once again is planning a huge mortgage-backed securities deal that will test the debt market.

Developers Bet Big on Seattle

Office space is going up on faith that companies such as and Microsoft will fill it as the city's technology sector booms.

Hong Kong Infrastructure Costs Escalate

The scope of infrastructure development Hong Kong has in the works is extreme even by its standards, with the pace of construction taking a toll on labor availability and straining budgets

Behind Venezuela's Odd Property Boom

Venezuela seems an unlikely place for U.S. companies to buy commercial real estate. So why are DirecTV, Avon, GM and other firms snapping up office buildings in Caracas?