There are lots of people who are unable to qualify for traditional funding products. This is especially true when it comes to financing the purchase of a residential property. Mortgage lenders have far stricter standards than ever before. Fortunately, it may be possible for these consumers to qualify for Atlanta hard money home loans.
These products are great for people who want to expand their investment portfolios. There are currently a number of buyer who are looking to secure homes that are offered below typical market value. They will then fix and flip these homes for profits. This entails a very short turnaround time which means that borrowers can secure products that must be repaid quickly.
When using products like these, it is often necessary to make a balloon payment within a fairly short period of time. The repayment terms for the products are stringent. Mortgages can last as long a thirty years. It will be necessary to pay these offers back in just ten years.
There are times when your lender will require you to have collateral that is equal in value to the loan that you want. This can be your primary residence or any other real property that you can use as surety. It may even be possible to get more lenient terms when you have adequate collateral.
Should you fail to adhere to the agreed upon terms, this property will be claimed by your lender and used to offset or cover the related losses. More often than not, however, hard money lenders will consider the property that you are currently buying as your loan collateral. This unit will be collected and used to cover your debts if you ever default.
Working with these companies will limit the risks that you face and it won't be necessary to have a large portfolio to qualify. There are countless lenders that you can work with in this area of the loan industry. You should know that these products can be quite different from one lender to the next. The rates for some will be far more flexible than the rates for others.
While you can get approval much easier when pursuing these products, you are certain to pay higher than average interest rates. This is why borrowers should shop carefully. Not only do you want to compare costs, but you have to see how good their customer services are and how long they have been in business. You can do the web to conduct all of the necessary research within a fairly nominal amount of time.
These products are great for people who want to expand their investment portfolios. There are currently a number of buyer who are looking to secure homes that are offered below typical market value. They will then fix and flip these homes for profits. This entails a very short turnaround time which means that borrowers can secure products that must be repaid quickly.
When using products like these, it is often necessary to make a balloon payment within a fairly short period of time. The repayment terms for the products are stringent. Mortgages can last as long a thirty years. It will be necessary to pay these offers back in just ten years.
There are times when your lender will require you to have collateral that is equal in value to the loan that you want. This can be your primary residence or any other real property that you can use as surety. It may even be possible to get more lenient terms when you have adequate collateral.
Should you fail to adhere to the agreed upon terms, this property will be claimed by your lender and used to offset or cover the related losses. More often than not, however, hard money lenders will consider the property that you are currently buying as your loan collateral. This unit will be collected and used to cover your debts if you ever default.
Working with these companies will limit the risks that you face and it won't be necessary to have a large portfolio to qualify. There are countless lenders that you can work with in this area of the loan industry. You should know that these products can be quite different from one lender to the next. The rates for some will be far more flexible than the rates for others.
While you can get approval much easier when pursuing these products, you are certain to pay higher than average interest rates. This is why borrowers should shop carefully. Not only do you want to compare costs, but you have to see how good their customer services are and how long they have been in business. You can do the web to conduct all of the necessary research within a fairly nominal amount of time.
About the Author:
Tom G. Honeycutt is a full-time real estate entrepreneur in Atlanta, GA. Tom helps readers by providing practical and useful knowledge to better understand lending choices. If you are looking for Private money Lending Atlanta he suggests you click here for more information.