Four Things To Be Considered Before Applying for A Bad Credit Home Loan!

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Four Things To Be Considered Before Applying for A Bad Credit Home Loan!

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Category : Bad credit home loans

There are plenty of reasons why you might have a bad credit rating, missed payments, loan defaults and other money miscalculations can affect your credit report and your financial future. Even if you have never had a loan or credit card before you could end up with a poor credit rating because lenders can’t access any evidence to show that you could manage your borrowing successfully.

However, getting a Bad Credit Home Loan is still possible even with credit problems. If you have a poor credit score and looking for a bad credit home loans, here are top 4 things that you should consider before applying:

1. Choose Secured vs unsecured:
You have many decisions to make when shopping for a bad credit loan, and one of them is whether to obtain a secured or an unsecured loan. Secured loans require you to use an asset to secure the loan, whereas an unsecured loan is a money that you borrow without using collateral. You are advised to contact your local lenders and check which loan can work out for your needs.

2. Check The Interest Rates:
This is when home loans come into play. When it comes to home loan interest rates, the lower one is always better. It is essential to consider the interest rates at which these loans are offered, some lenders offer low and attractive interest rates while others have too high and unaffordable interest rates. Choose one of the most reliable lenders that can provide the loan at lower interest rate with fewer documentation works.

3. Repayment Duration:
This is the most important parameter that the lender will look into while deciding your home loan tenure. The older you are, lesser will be the home loan tenure and the younger you are longer will be your home loan tenure. If you take a home loan for a short period then your EMI will be high, and if your home loan tenure is long then your EMI will be low. So choose accordingly which is better for you.

4. Check Your Ability for Repayments:
If you will fail to keep up with your loan repayments, it could seriously affect your credit score. So check your ability to pay your loan repayments on time.

Conclusion:
There are many different loans for people with bad credit, so always do plenty of research before applying to make sure you have found the best loan to suit your needs. If you need more information about a bad credit loan, please feel free to contact Magna Capital Group, Inc. today at (310) 734 4044 or email at info@magnaloans.com.

Top 5 Best Ways To Finance Investment Properties!

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Category : Fix & Flip Loans , Hard Money Loans , Home Equity Loan

If you have a good deal to invest in real estate and looking for the best ways for financing, you are certainly at the right place. Financing investment property is about obtaining a property for short and long-term investment. It’s a good way to gain income. Investors would either acquire a property to have it leased to generate revenue or have it renovated and sell it at a higher price. Here are top 5 best options for you to finance your investment properties:

1. Traditional Bank Loans:
This is the first and most common method for financing investment properties, but you need to have a solid credit rating and be financially stable before trying to invest in properties. You can borrow money from banks, credit unions, home mortgage companies, and other financial institutions. Most of these lenders require a high credit score and a full documentation of your income and debts. You also need to pay out at least a 20% down payment. Because these complex loans requirement and a large down payment, real estate investors are less likely to default and tend to have a more secure financial standing.

2. Fix-and-Flip Loans:
A fix and flip loan is short-term loan secured by the property. Fix and flip loans work a little differently than conventional loans. It’s much easier to obtain in comparison to conventional loans. A fix and flip loan is suitable for financing investment properties if the purpose of your investment is renovating a real estate property and then putting the property for sale to earn profit. If you are sure you can turn a profits, a fix-and-flip loan is a great option for financing investment properties.

3. Home Equity Loans:
If you have significant equity in your existing property or primary residence, you can easily opt home equity loans. You can get as much as 80% of a home’s equity value in a loan to buy an investment property. The lender will give you the funds upfront, and they will be required to make a fixed payment each month. This method can be a more secure way for financing investment properties because you will have some collateral to back them up if your investment doesn’t work out.

4. Private Hard Money Loans:
This method for financing investment properties is commonly used when real estate investors believe they can raise the value of the investment property over a short period of time. Hard money lenders offer loans for flippers and real estate developers on slightly different terms than banks. They give cash for buying an investment property in exchange for a specific interest rate. These loans are the best choice for those people who don’t necessarily have great credit but require quick money to finance their investment properties.

5. Search For A Investment Partner:
If you want to invest in a real estate property, but the price range is outside of your budget, you might consider adding an equity partner to your team. Real estate partnership can be a win for both parties and is very beneficial to new real estate investors. You can use the partner’s cash for financing the entire property or use a partner to only fund the down payment. There are no set rules, but each deal requires its own examination of who makes the decisions, how profits will be split at the end, etc. However, partnerships can also cause more troubles than a single head, especially if each one of them is thinking in its own way and considering only its own gains. So make sure you do not do partnerships with just anyone who is not reliable.

The Bottom Line:
There are many different ways for financing investment properties, but you need to find the most suitable way to keep your investment property moving forward. Finding the right method of financing investment properties is key to your success, so make sure that it fits the type of program that you’re planning to invest in. For more information about financing investment properties, contact Magna Capital Group, Inc. today at (310) 734 4044 or email at info@magnaloans.com.

Hard Money Loans For New Home Construction!

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Category : Construction Loans , Hard Money Loans

What is a hard money construction loan?
A hard money construction loan is a short-term loan used to finance the construction of real estate investment property. Hard money construction loans are often the most attractive option for seasoned investors who are looking to challenge themselves by building a home from the ground up or completing a tear-down and gut renovation of an existing structure instead of average fix and flip.

Benefits of a hard money construction loan?

With most hard money loans, the loan amount is based on the as-is house or lot value combined with repair or construction costs. An additional benefit of a hard money construction loan is that there is no minimum credit score. However, keep in mind that unlike hard money fix and flip loans, experience is essential for a new construction loan! Hard money lenders fund up to 60% of the land value and 100% of the construction budget, capped at 60% of the ARV. With interest rates from 10% to 12%, points ranging 2% to 3% and a loan term up to 18 months, seasoned investors rely on construction loans like these for finance their business. Hard money lenders closed loans in as little as 48 hours, and have an average close time of 10 days, unlike a conventional loan which takes a minimum of 60 days to close.

How to get a hard money construction loan?

The process of obtaining a hard money construction loan is much different than a conventional mortgage. Unlike a conventional loan, which requires lots of paperwork, a new hard money construction loan requires relatively light documentation. Once you have completed loan application for a hard money construction loan, the loan officer and underwriter will review the deal with you and order an appraisal if the deal fits. The underwriter will ask questions about your experience, as well as request copies of the construction plans and other relevant documentation. Hard money lenders will issue a written term sheet that outlines all the loan’s details. The loan then moves to processing where the few required documents are collected, and ultimately the loan is closed by an attorney.

The Bottom Line:

Real estate investing is a growth industry, and good deals move quickly. Seasoned investors know how crucial a quick close can be. Hard money construction loans are the faster and easier alternative for obtaining financing for the construction of a residential or commercial property and that’s why experienced real estate investors have relied on hard money loans as a source of quick and reliable capital to fund their real estate deals for decades.

If you are considering building a new home from the ground up and need new construction financing, please feel free to contact Magna Capital Group, Inc. today. We have all the resources and information to help you successfully navigate the complexities of new construction financing. We provide the quickest and most streamlined lending process in the business to maximize your investment portfolio.

Our goal is to help you manage your investment portfolio in the most efficient manner possible. Over the years we have helped thousands of our customers achieve maximum wealth with the least amount of hassle. We have a creative solution to your financing needs. For more information about our construction loan programs, Call us today at (310) 734 4044 or Email at info@magnaloans.com.

Top Three Financing Options For Fix and Flip Investors

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Category : Fix & Flip Loans , Hard Money Loans , Home Equity Loan , private money lenders

Flipping a house is a form of real estate investment that involves purchasing a house or property, fixing it up and selling it quickly. To get started, you will need capital to purchase and renovate a house before you can flip the house for a profit. Here are the costs involved in flipping a house:

  • The purchase cost of the house.
  • Rehab costs.
  • Appraisals and inspections carried out on the property.
  • Holding costs, Realtor fees, and closing costs.
  • Loan interest and fees.
  • Down payments on loans.

Now you will have to look at how to cover these costs. Luckily, there are four fix and flip financing options available to flippers:

1. Traditional Bank Financing:
The first place you might look for a loan is your local bank. This is where the bank pays for the property and you pay the mortgage payments until the house is rehabbed and sold. You will need good credit and good track record of successfully flipping houses to qualify for a traditional loan. If you have bad credit or low credit score, there is no chance to get a traditional fix and flip loans for you. In this situation, you can consider the second financing option that is hard money loans.

2. Private Hard Money Loans:
A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real estate property. Hard money lenders make loans for flippers and real estate developers on slightly different terms than banks. They provide hard money loans which are best for experienced or inexperienced flippers who need money quickly. These loans are designed for people who don’t necessarily have great credit but need money to complete their renovations.

3. Home Equity Loan or Line of Credit:
A home equity loan is basically a second mortgage and you are repaying the loan over a fixed term. A home equity line of credit usually comes with a variable rate, but you can draw against your credit line whenever you need extra money. So, if you have significant equity in an existing investment property or primary residence, you may consider tapping that to fund your house flipping project. The biggest issue with this financing option is that your house serves as the collateral and if you fall behind on the home equity loan or line of credit payments, the bank could decide to foreclose on your house.

The Bottom Line:
House flipping is not only for the rich but also for the resourceful! The key is finding the right solution for your unique needs. These are top three ways you can finance house flipping projects. Out of these three fix and flip funding options, the best one for you depends on the type and condition of the property, your experience with real estate investment, and your personal financial situation.

If you are a fix and flip investor with imperfect credit who is looking to buy discounted properties, fix them up, and sell/flip them within 12 months, then consider hard money loans for the capital you need. Magna Capital Group, Inc. is a reputable hard money lender in California. We offer financing options to real estate investors looking to renovate and resell residential and commercial properties. We provide the best loan programs to meet your financial goals. If you feel that a hard money loan is right for you or if you have any query, feel free to call us now at (310) 734 4044 or email at info@magnaloans.com.

Top 7 Advantages Of Using A Home Equity Loan Or Line Of Credit!

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Category : Home Equity Loan

A home equity loan(also known as a second mortgage) is a secured loan where homeowners borrow money from a bank or lender using their home as collateral. They get a certain amount of credit based on the amount of equity in their homes and then use that to make purchase real estate properties, home improvements, debt consolidation, pay for major expenses and life events etc. If you trying to make a big life change but need a financial help, a home equity loan can help you reach your goals.

Home equity loans are attractive to both borrowers and lenders. Here are a few of the key benefits for borrowers:

1. Easier To Qualify:
With all the financing choices out there it can be challenging to find the right loan or credit option for your situation. Home equity loans may be easier to qualify for if you have bad credit. As your home securing the loan, lenders have a way to manage their risk.

2. Lower Interest Rates:
Home equity loans typically have a lower interest rate than unsecured loans such as credit cards and personal loans. This type of loan is considered “secured” by the collateral of your home, so lenders are more confident in your ability to pay your debt. Lower risk means lower rates.

3. Large Amounts:
If you have significant equity in the home, you can qualify for relatively large loans with home equity loans. For large expenses like home improvements, higher education, or starting a business, your home equity may be the only source of funding available.

4. Cash Payment:
A home equity loan provides a lump sum of money. This allows you to knock out medical bills, contractor costs or other major expenses with one check.

5. Potential Tax Deduction:
100% of your home equity loan interest payments may be tax deductible, which may not be the case with credit card debt. Consult your tax adviser to see if you qualify.

6. Flexibility:
Flexibility is the most attractive benefit of this type of loan. Home equity loans offer homeowners flexibility in how they spend their money. Homeowners can draw on their home equity line anytime or simply leave their home equity line of credit untapped. They only need to make payments on their home equity lines of credit when they use it, much like with a typical consumer credit card. This is the best choice for those who need ongoing access to their funds.

7. Stability:
One of the many appealing features of home equity loans is its stability. When you qualify for a home equity loan, the entire sum of the loan is available for you to use, and you’ll repay it at a fixed-interest rate. This makes it very convenient for you to manage your funds. Once homeowners take out a home equity loan, the money is theirs. They simply have to make their monthly payments on time to pay it back. However, lenders can cancel a home equity line of credit or reduce its size whenever they want, as long as they provide proper notice to their clients.

The Bottle Line:
If your home is worth more than you owe on it, a home equity loan can offer funds for anything you want. You don’t just have to use the money for home-related expenses but can also use any of your financial needs. If you’re planning to tap your home equity, please feel free to contact Magna Capital Group, Inc. today and speak with one of our expert representatives at (310) 734 4044 or email at info@magnaloans.com.

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