Learn To Be A Fix & Flip Investor: Arizona Bad Credit Home Mortgage Lenders

Showing posts with label Arizona Bad Credit Home Mortgage Lenders. Show all posts

Tuesday, November 6, 2018

ARE THERE LENDERS THAT WILL APPROVE A LOAN WITH ONLY 10% DOWN

What type of down payment do I need for a hard money loan? Is a down payment required?
The answer is, no a down payment is not always required. However, there is a difference between needing your own money for a down payment and being prepared to use some of your own money towards your potential property. Certain lenders will require a certain percentage as a down payment— that percentage can be calculated from your credit score and/or your real estate investing experience. Don’t get nervous; Arizona hard money lenders are not as concerned about your credit as they are your hard assets. You DO NOT have to have perfect credit to be approved for a loan. Most Arizona hard money lenders will work with you if you have a FICO score of at least 550. However, depending on the lender, you may have to put a little more of your own money down. Lenders that require a down payment usually will ask for between 10%-20% down with decent credit and around 25%-30% for bad credit—remember this is SOME lenders.
The good news is there ARE lenders who will only require a 10% down payment (and you may find one that doesn’t require one at all—although, that may be prove to be a little more difficult). With only 10% down, you are looking at a lender that will fund your investment at 90%.
All lenders use a different underwriting process. Underwriting uses the criteria they gather from you to assess the lender’s risk. That criteria will determine if there is a down payment; or determine the total down payment. Regardless, of the process they use it will be a much more lenient process than a traditional bank loan.
Can I find an Arizona hard money lender that will fund 90% of my investment?
Absolutely! However, you will have to research for those lenders and find out their requirements. Arizona hard money lenders that ask for a down payment are doing so to lower their risk. Also, borrowers that have something to lose put extra effort into the project.
A lender may fund you 90%, leaving you with only 10% of the cash flow to produce. Keep in mind that many times a borrower may not have to put much money as a down payment, but will have a money gap. If there is a money gap you will need gap funding. Gap funding is the money needed to fund an endeavor that is not currently being provided by debt, cash or equity. Essentially, it’s a second mortgage on a fix-and-flip or rehab loan. You can get gap funding from a Arizona hard money lender, as well. Make sure when you meet with your lender you ask them about money gaps.
You can get into real estate investing with little or no money of your own.
It is possible to get a hard money loan with only 10% down. However, you must fully comprehend your circumstances and what tools will be necessary to make that happen. Find a lender that you feel comfortable with, set up a meeting, bring all your information and, most importantly, ask questions!

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Sunday, October 14, 2018

The Definitive Guide to Fund your Investment Property with Arizona Hard Money Loans

Why are more and more investors obtaining Arizona hard money loans? There are certain investment strategies that make this type of loan appealing and lucrative.
This is a type of loan that is not obtained from a conventional financial institution. The expense, almost always, is slightly higher than a conventional loan. The points involved can be about 2% to 6% and are the initial compensation to the broker. The interest rates can be between 8% to 12% or more. There are a number of factors affecting the points and interest rates, such as loan duration, borrower credit, real estate type and the market fluctuations.
In the aftermath of the housing crisis in 2007-08, conventional loans came under stricter regulations. If you have good credit, proof of income, and are seeking a 30-year fixed rate loan, a conventional loan may be your best option. These types of loans are, however, under tighter underwriting restrictions and, if the loan officer cannot check all the boxes when you are applying for the loan, you may just be out of luck.
Conventional loans can be denied if you have bad credit, no income, lots of assets, or numerous liabilities. Under various circumstances, you may benefit from Arizona hard money loan. These include:
Unimproved land purchase
Your purchasing an unusual property such as a church or marina
A quick closure is required. You can often close in as little as a week
Personal assets are limited
A hard money loan, in the instances above, may be your best bet. An Arizona hard money lender will step in when a conventional loan will not work. The ability to quickly purchase the property you have located can mean the difference between a successful investment and one that goes nowhere.
Arizona Hard Money Loans that are Flexible
Arizona hard money loans are often more flexible than conventional loans. And once you locate that unique property, timing is of the essence. Typical Arizona Hard Money Lenders close within a week. At Level 4 Funding, we present you with an approval in as little as 24 hours, and with funding in as little as two days. This gives you the flexibility to go after those properties that traditional banks may view as too risky. You may see a higher rate of return with a hard money lender. The hard money lender values the properties themselves and may be willing to loan at a higher loan-to-value ratio as long as you can demonstrate the potential for repair value improvements. When you get into a competitive bidding situation, the hard money lender can offer repair funding which may lead to acceptance of your offer.
Many contractors, real estate brokers, investors and developers have experienced financial distress such as bankruptcy, asset for foreclosures, and delinquent accounts.
Because of the failure to meet the credit score requirement with conventional loans, Arizona Hard Money Lenders are there to fill the gap. To repair your credit rating and convert your hard money loan to a conventional loan, utilizing a hard money lender will assist you to archiving this with positive performance. With few employees and licensed as a real estate broker, a Hard Money Lender is an advantage since you are dealing with the decision maker directly.
Call Level 4 Funding and talk to us directly. We are happy to answer any questions you may have about your potential investment.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

Tuesday, October 9, 2018

Rental Property Loans: Things to consider when it comes to Conforming Mortgages.

When it comes to rental property loans, conforming mortgages are the lowest cost financing option available. Learn about the basic providers of this type of financing, what they will expect from you as a borrower and whether or not this is the right financing option for you.
A "conforming mortgage" is essentially the same thing as a standard home loan. The main difference is that you the borrower use the loan to purchase an Arizona Investment Property instead of a primary residence. Because you are using the loan proceeds to buy an Arizona Investment Property, lenders charge more for this type of loan and expect more from you as a borrower. Simply put, you are going to pay your primary mortgage first and foremost before paying the mortgage on your Arizona Investment Property.
This added risk makes this type of loan a bit more expensive than a standard home loan.
When it comes to conforming mortgage providers, lenders fall into three broad categories, online, businesses investment lenders and traditional banks.
Online providers offer convenience when compared with the other two types of lenders because you don't have to go to a physical location to apply. With online lenders, you can complete the entire lending process from the comfort of your home. Business investment lenders are ideal for borrowers who are a, businesses and b, looking for greater flexibility. The other two types of mortgage providers don't usually lend for commercial or multifamily purchases. A traditional brick and mortar bank is best if you are looking for a provider with insight into your local market. In addition, one-on-one meetings with your lender in this situation, give you the opportunity to build a relationship, which you could leverage to secure a better deal.
In the case of Rental Property Loans, and specifically conforming mortgages, your eligibility will come down to a specific set criteria.
No matter which type of mortgage provider you choose there are basic standards borrowers should know before approaching any investment lender.
Basically, you can't have a credit score lower than 620. Don't have your debts take up more than 25 percent of your regular income, this is known as Debt to Income Ratio. If your debt to income ratio, it exceeds the 25 percent standard, expect your application to run into difficulties. If your score is lower than 620, or if you have a lot of outstanding debt you are better off considering alternative forms of financing.
When it comes to rental property loans, a standard conforming mortgage may not always the right help for you.
There are many situations where a "conforming mortgage," might not meet your needs.
Conforming mortgages, conform to the standards set by Fannie Mae and Freddie Mac. Therefore there are specific situations where no matter how great your credit is, you will not qualify for a conforming mortgage.
The property you aim to purchase may be in deplorable condition. No conforming mortgage lender will be able to approve a loan on a property that falls short of FHA guidelines.If the property you want to invest in is in shambles you should look into a rehab loan first.
Another situation is where you have 4 or more outstanding mortgages, the more mortgages you have the great scrutiny a lender will have give to your credit profile until you essentially need perfect credit to qualify. If this is your case, look into a blanket mortgage.

However, conforming mortgages are perhaps the most comfortable option for those just getting into the rental business. Before looking into a conforming mortgage, consider which type of lender can meet your needs, know the basic standards of qualification and whether or not a conforming mortgage is really best type of financing for your specific situation.

Dennis Dahlberg Mortgage Broker[3][2][2][2][2][2] Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

The Differences between Unsecured vs.Secured Real Estate Lines of Credit

The main difference between unsecured and secured real estate lines of credit, comes down to how these loans are secured. Both loan types offer you a similar degree of flexibility and savings when compared to traditional financing. Evaluating the cost of both loan types can help you figure out which type of loan is right for your specific situation.
Your personal property provides security in the case secured lines of credit. Personal property can range from your primary residence to anything your business owns or some other form of collateral. With an unsecured line of credit, the loan isn't secured by anything except for your lender's estimation of your financial strength.
Now, why not just apply for a regular term mortgage to finance your next real-estate purchase?
With a term loan of any sort, a lump sum is given to you up front. No matter how much money you spend, you still need to make interest payments on the full loan amount. In addition, with term loans, you generally need to take a new loan out to finance each separate acquisition. A line of credit gives you far more flexibility. With a line of credit you only owe and pay interest on the amount you spend, and you don't need to apply for a new loan with every new purchase of real-estate.
Both unsecured and secured real estate lines of credit offer flexibility and savings over standard term loans, but there are some differences in terms of costs.
A secured line of credit is taken out and is secured by some form of collateral, which offers your lender a degree of safety should you default. By mitigating risk, lenders can provide lower interest payments on secured lines and larger credit limits. Nevertheless, with a secured loan of any sort, credit line or term loan, your personal or businesses assets at risk.
With unsecured credit lines you the borrower don't risk your personal property if you default. However, lenders need to protect themselves in some way, and so unsecured lines offer lower credit limits and entail higher interest rates, Unsecured lines also come with far more stringent qualifications versus their secured counterparts.
With secured and unsecured real estate lines its important to evaluate the costs of each loan type. This can help you determine which type of loan is right for your specific situation.
A secured line of credit is an excellent idea if you are confident you can pay back whatever you spend, as you don't want to lose your personal property in the course of expanding your business. Because secured lines offer lower interest payments and larger limits, it is probably best to employ a secured line of credit for making full offers on properties.
Unsecured lines may be more expensive, but they are an excellent way to reconcile differences between offers you want to make and the amount of cash you actually have on hand. You should employ unsecured lines only when necessary due to the higher interest payments involved.
In both cases having access to a credit line allows you to quickly close deals on investment properties. With a credit line, you don't need to wait on a lender to make a full offer, which can give you an edge over competing buyers who might need to wait on financing. In addition, credit lines can offer significant long-term savings over term loans because only pay back and pay interest on the amount that you spend.
As with any type of financing, consider the costs, the risks and the benefits of each type of credit line to figure out which one is right for your specific situation.

Dennis Dahlberg Mortgage Broker[3][2][2][2] Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

Monday, October 8, 2018

Secured Real-Estate Lines of Credit: Benefits and Drawbacks

Looking to expand your businesses real-estate investment portfolio? Secured real estate lines of credit offer many benefits.A secured line of credit turns you into a cash buyer, and a secured real estate line of credit, you can make a full offer right away without having to wait for financing to come through. A secured line of credit can give you an edge over the competition when it comes to purchasing the best investment properties, while offering you savings over a standard term loan.

To qualify for this type of credit line, you'll want to be a seasoned real-estate investor, whose properties are titled to an LLC or other legal business entity. Qualifying for this type of loan depends on how much income your business earns on a consistent basis and the total value of the properties currently titled to your business.

Eligibility in the case of secured real-estate lines of credit, comes down to the value of business assets and the financial strength of your business.

To get more specific about the qualifications for a secured line of credit, the sum of the loan you receive generally cannot exceed 65 percent of the value of your business's currently held assets. In addition, your company should have a healthy balance of debt and income.

Because this is a business loan, its the financial strength of your company which counts for your lender, making your personal credit score a non-factor, which can make qualifying easier.

Secured real-estate lines of credit generally imply higher interest payments, and as with any secured loan, there is some risk to your personal property. However, if you can qualify, you could save a lot of money.

Business loans of any sort carry higher interest rates, but when compared to an unsecured line of credit, a secured line of credit generally offers lower rates, typically of 4-8 percent.However because a this line of credit is secured, your lender can confiscate whatever property you pledge should you default.

Nevertheless, applying for a secured credit line carries lower fees and little to no up-front costs. Application fees are virtually unheard of and there little in the way of underwriting costs.

But beyond the savings this type of loan offers you concerning fees, its primary benefit to you is what you could save in terms of interest. With a line of credit you only pay down and pay interest on what you spend, when compared to a conventional term loan this can result in massive savings.

In addition, secured lines of credit offer flexibility, once the loan closes you can spend the money in any way you see fit, with no restrictions on the type of property you can purchase. Compare this to a conventional loan where your lender will have to scrutinize the property you are purchasing.

Once you qualify for a secured line, your lender then gives you a lump sum which you draw from to finance individual purchases or spend as you see fit. So if your business can qualify a secured line of credit can help you rapidly expand, diversify your real-estate investment portfolio and could result in significant savings in terms of interest payments.

Dennis Dahlberg Mortgage Broker[3][2][2] Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

Benefits of Unsecured Real-Estate Lines of Credit

Unsecured real-estate lines of credit can offer many benefits to those who can qualify. With an unsecured line you don't risk your personal assets, and you save money over a standard loan. Above all with this type of loan you can close deals without having to wait on a lender, which can give you an edge over your competition.

Some refer to this type of loan as an acquisition line of credit. It allows you to acquire new investment properties without requiring you to pledge your personal or businesses property as collateral. Lenders secure this type of loan based on their perception of your strength as a borrower.

So qualifying for this type of loan will depend on your financial profile, be it your credit score, or the income you earn from your current investment properties. So if you can qualify for an unsecured line, it could be an excellent financing solution.

The main benefit of unsecured real-estate lines of credit is you can leverage your financial situation and strength as a borrower without putting your personal property at risk.

The main advantage of an unsecured line vs. a secured or equity line of credit is that your personal property is not used to secure the debt. Simply put, in the case of an unsecured line of credit, your lender cant repossesses your house should you default. Note that because this type of loan is unsecured, you need to be an exceptionally strong borrower to qualify.

However there are fewer hassles with unsecured lines of credit, and the overall process can be a lot smoother. Unsecured lines often come with little in the way of up-front fees, a sparse amount of documentation is needed, and no appraisal is necessary.

With credit lines, you only spend what you need to and you pay back only what you spend. This aspect of credit lines is a significant advantage over a term loans, where you make interest payments on the full loan amount you borrow and pay back the entire loan amount.

After you qualify for an unsecured line of credit and your loan closes, you receive a lump sum which can then draw from whenever you need. You can make multiple offers on multiple properties using the same line of credit or use the funds to cover any other expenses.

Unsecured real-estate lines of credit offer you flexibility, you don't have to go to a lender every time you want to acquire a new property

Above all, you can spend the proceeds of your credit line at your leisure, and on any property you wish to purchase. With this type of loan, you don't need to apply for a new loan every time you want to make an offer on a property. You don't need to wait around for your lender to scrutinize the details of your purchase, and you can make a full offer right way.

So if you can qualify an unsecured line of credit could be a great financing solution, which can help you rapidly acquire new properties while at the same time protecting your businesses assets.

Dennis Dahlberg Mortgage Broker[3][2] Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

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Tuesday, November 6, 2018

ARE THERE LENDERS THAT WILL APPROVE A LOAN WITH ONLY 10% DOWN

What type of down payment do I need for a hard money loan? Is a down payment required?

Can I find an Arizona hard money lender that will fund 90% of my investment?

You can get into real estate investing with little or no money of your own.

Sunday, October 14, 2018

The Definitive Guide to Fund your Investment Property with Arizona Hard Money Loans

Why are more and more investors obtaining Arizona hard money loans? There are certain investment strategies that make this type of loan appealing and lucrative.

Arizona Hard Money Loans that are Flexible

Tuesday, October 9, 2018

Rental Property Loans: Things to consider when it comes to Conforming Mortgages.

When it comes to rental property loans, conforming mortgages are the lowest cost financing option available. Learn about the basic providers of this type of financing, what they will expect from you as a borrower and whether or not this is the right financing option for you.

In the case of Rental Property Loans, and specifically conforming mortgages, your eligibility will come down to a specific set criteria.

When it comes to rental property loans, a standard conforming mortgage may not always the right help for you.

The Differences between Unsecured vs.Secured Real Estate Lines of Credit

Both unsecured and secured real estate lines of credit offer flexibility and savings over standard term loans, but there are some differences in terms of costs.

Monday, October 8, 2018

Secured Real-Estate Lines of Credit: Benefits and Drawbacks

Eligibility in the case of secured real-estate lines of credit, comes down to the value of business assets and the financial strength of your business.

Benefits of Unsecured Real-Estate Lines of Credit

The main benefit of unsecured real-estate lines of credit is you can leverage your financial situation and strength as a borrower without putting your personal property at risk.

Unsecured real-estate lines of credit offer you flexibility, you don't have to go to a lender every time you want to acquire a new property

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