Whether you’ve been going through a foreclosure in the recent past or want to buy an unconventional property to turn into your dream home, finding financing can be a real struggle for you. Even qualified borrowers can find it difficult to secure the loans that they need in order to buy residential properties in today’s market. For investors and borrowers who don’t meet conventional lending requirements, finding financing might even seem impossible. Thankfully, hard money loans are a viable option for residential buyers with unique needs. Hard money loans also known as equity-based or private financing which have long been used by real estate investors who want to purchase properties traditional lending institutions won’t finance. However, hard money loans can also be used by residential buyers who want to purchase homes or investment properties.
Residential private money loans can be used in a wide variety of buying situations. Although, some believe that these types of loans are only for those with poor credit, but that simply isn’t true. Here are some other situations when property buyers use residential hard money loans:
• Homes don’t meet the requirements of FHA lenders.
• Buyers want to turn non-conventional properties into homes.
• Traditional lenders are unable or unwilling to finance fix and flip loans.
• Buyers have a mortgage on another residence.
• Buyers need to finance purchases quickly.
Who Uses Residential Hard Money Loans?
Hard money loans are utilized by many different types of Borrowers because of its flexibility. Many real estate investors prefer to use hard money loans because they find properties that they want to buy and don’t have time to wait for approvals through traditional financing institutions. Other investors opt for these types of loans because they want to buy properties that must be rehabbed or are viewed as high risk by lenders due to their location or use history. Individuals who have been through foreclosure or bankruptcy may also be able to use hard money loans to purchase residential property.
Buyers who are considering using a private lender enjoy options that traditional lending institutions don’t offer. Whether you want to buy a distressed property or want to get back on track after a foreclosure, a private financing might be a good choice. With careful, advanced planning, private financing can provide for an excellent return on investment.
Conclusions: Hard money loans meet requirements in all kinds of buying situations. The advantages of easy access, flexibility, convenient requirements and rapid processing allow you to purchase residential or commercial properties quickly. For additional queries, call Magna Capital Group, Inc at (323) 655-6888 or visit http://magnaloans.com/ today.