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Mortgage Loan FAQ
Private money mortgages satisfy the financial needs of small & big-time investors, as well as those individuals needing financing to buy (or refinance) real property. There are numerous players involved in the private loan marketplace. It is in this marketplace that borrowers and investors search for promising investment opportunities, although each has a unique perspective.
Mortgages, by their very nature, are intricate financial instruments but are financial investments that are easy to understand with a bit of online research or a conversation with a private moneylender representative.
For the Broker – FAQs
Can mortgage loan brokers place ‘difficult to finance’ loan scenarios on a wholesale basis?
Private money mortgage lenders approve loans in accordance with their own guidelines and property standards. This results in quick turnaround times, and fast closings.
How are mortgage loan brokers compensated if they place loans with a private moneylender?
Brokers provide a significant source of our loan originations and refinancing. Loan brokers are compensated quickly through our streamlined compensation process.
Do private mortgage money sources offer only one type of mortgage money program?
The private mortgage money market has been designed to capture loans that are difficult to place in more traditional markets. As such, private moneylenders offer many different mortgage products to meet countless financing situations.
Can loans be structured to meet unusual scenarios?
Of course, that is one of the fundamental reasons brokers choose to place oddball, atypical scenarios with a private mortgage lender.
For the Investor – FAQs
Do private money mortgages require a minimum investment?
Minimum investment amounts vary.
Do private money stakeholders invest in collateralized notes?
All mortgages loans are secured by real property. This is the exact definition of a mortgage.
What is the rate of return on private mortgage investments?
Like its distant cousin, the convention mortgage loan market, interests rates for private money mortgage vary as a result of:
- The age of the mortgage
- The size of the mortgage
- The terms of the mortgage’s promissory note
- The financial situation underlying the borrower’s request for financing
- The overall economy
For the Borrower – FAQs
Is a private money mortgage underwritten to one specific set of industry guidelines?
The lending institution sets forth the private money mortgages guidelines.
Is the loan processing time for private money mortgages longer than the time it takes to secure a conventional mortgage?
One of the fundamental benefits of private money mortgages is that their processing time is dramatically reduced from months (in the conventional marketplace) to 5-10 days. For those in need of quick funds, these mortgages are a great solution.
Are private money mortgages designed (and priced) to meet the needs of risky borrowers only?
Private money mortgages are a great way to finance property for people who do not meet the profile of the typical borrower. These private mortgages are an alternative financing solution for borrowers who, by the very nature of their business, cannot meet strict conventional guidelines. Those who choose to finance with private money mortgages include:
- Limited Liability Companies
- Self-employed individuals, and
Why do borrowers choose private money mortgages?
Private money lenders offer financing options that require only minimal amounts of documentation, faster processing times and the opportunity to finance alternate types of real property as collateral.
Private mortgage moneylenders finance unusual real estate situations for borrowers and then offer financial investment opportunities for investors to pursue. It is a viable business solution that meets the needs of many individuals who previously had none.
Why should borrowers choose private lenders over traditional banks? The short answer is that these lenders fill in the gaps where other lenders fail. Many individuals today have the ability and desire to invest in a new home, but they have an unproven track record....
Hands-on real estate investors have been buying distressed properties for a quick profit for a very long time. Over the years, investors fine-tuned their methodologies, when it became quite apparent that the use of hard money was easily accessible and came with...
Those seeking to borrow money to make a real estate purchase or another type of investment can turn to hard money loans as a feasible, solid solution. There are many reasons to make this decision. Key among them is the loan to value requirements available through hard...
The investment in a new building requires careful planning and access to a high level of capital. Several funding options are available for this type of loan. Two common options include a bridge loan and a construction loan. Both have different purposes and benefits....
Loans are offered under either: California Bureau of Real Estate License 01897444 or California Finance Lender License 6054605
Mortgage Loan Originator, NMLS license no. 945582