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Private real estate financing gives assistance to investors who want to buy, renovate or refinance a home or property via a short-term mortgage from a private firm or an individual. As opposed to loans from banks, Texas private mortgage loans are fast closing, have minimal eligibility requirements and accessible to self-employed customers.
Meaning that regardless of whether you have a good credit score, you still have a high probability of receiving private money for a real estate loan if your undertaking is deemed to be profitable, you have adequate capital to put towards the downpayment, you have demonstrated yourself capable in the real estate market previously, you have sizeable equity in the home or property or you have a clear plan to pay off the loan. And with fast closings of just fourteen days, private real estate mortgages in Texas are an ideal choice for real estate investors.
Primarily, customers rely upon Texas private mortgage lenders to fund their endeavors when:
A rehab or renovation will help to offer the home for a higher price point or fetch significantly more rent.
For instance, we had a customer who owned a two-family rental property. He had already built ample equity in the property and the rent payments was a routine income source. While several improvements to the place might have helped him charge more rent, a bank would undoubtedly have turned down the loan application, since his credit score was down at 520. When he approached Island View Private Loan Fund to obtain financing, we were happy to complete a cash-out refinance for 65% of the property's market value.
They need to combine their financial debts.
The majority of people find that it's stressful to take care of multiple payments each month. This is why many people choose to make the most of the equity in their house to consolidate each of their financial debts into one mortgage loan which has a single monthly payment.
They want to allocate their equity in one home and invest in another one.
One of Island View's clients located in Hawaii had a home valued at over $1,000,000. When he failed to procure a buyer for the property, he signed a lease-option-to-buy deal with an interested party. The amount of rent was more than enough to pay for his regular mortgage payment, property taxes and cost of insurance. Additionally, he received a $200k non-refundable down payment for the three year lease agreement. These sureties meant that he did not have to be concerned with the home's future expenses, and so when a new real estate investment opportunity surfaced, he came to IVPLF and got a private mortgage loan at 70% loan to value. The money helped him pay for his next investment and also deal with his initial mortgage.
They have an existing private loan and cannot afford the pending balloon payment.
A person who invests in real estate and has a prior private mortgage and is unable to pay for the balloon payment caused by a change of circumstances can submit an application for refinancing from a different lending company. A cash-out refinance helps the person make the balloon payment and escape consequences.
Looking to connect with a private mortgage lender in Texas speak about financing options for your upcoming project? Complete the contact form or get in touch with us via phone to talk about your property or properties.
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