All Forum Posts by: Max Matrin

The Federal Housing Administration (FHA) offers special loans to help both low- and moderate-income families purchase housing. All FHA loans are federally backed and all FHA lenders have been approved by the federal government to service the loans. When compared to other types of mortgages, an FHA loan is especially affordable and easy to qualify for, making them a great choice for people and families who have a limited budget or a tarnished credit history.

Hard money lenders would lend solely based upon the deal or property at hand. They would only lend up to a certain percentage of the fair market value of the property, that way in the event of default, the hard money lender would profit handsomely if they had to foreclose or sell to an end buyer. Now, you will find that many hard money lenders, if they want to stay in business, require more than just equity to qualify. This is because the laws now are favorable for consumers. Consumer protection laws, time consuming and expensive court procedures, and so on have forced some hard money lenders to become even harsher when applying for a loan.

Jeanne is one of the most all-around amazing lenders I have ever worked with. As a real estate broker, I understand how critical it is to have a knowledgeable, ethical and responsive lender, and Jeanne exceeds each of those criteria.

Hard-money loan documents generally consist of a promissory note , a commercial-style deed of trust and security agreement ; and a participation agreement . Occasionally one will see a loan agreement or joint venture agreement as well. The latter is less common because a JV agreement would make the lender jointly liable to third parties and hard-money lenders usually want none of that.

You would want to get a loan from a Bank which either charges the lowest interest or has an attractive product feature or is the most convenient to you. During this process, you will have to submit an application form together with all the supporting documentations (such as a photocopy of your Identity Card, pay slips, EPF statements, booking receipt and etc) to the Bank and the Bank will assess your credit profile to determine if they want to approve or reject your application. If the Bank decides to approve the loan, they will issue an Offer Letter which you have to sign in acceptance.

When the word gets out that you’re lending private money, you’re going to have real estate investors coming out of the woodwork looking for funding. That’s great news, because as an investor yourself, you benefits from having a diverse selection of deals from which to choose.

Because FHA loans are insured by the government, they have easier credit qualifying guidelines than most lenders, as well as relatively low closing costs and down payment requirements.With an FHA loan, your down payment can be as low as 3.5% of the purchase price, assuming you have at least a 580 credit score. And closing costs can be bundled with the loan. In other words, you don't need much cash to close.

Portfolio lender is a bank or other lending institution that makes mortgage loans with the intention of holding the loans in their investment portfolios. Portfolio lenders can often offer consumers greater flexibility in the loan granting process, as well as down the road, than lenders who make mortgage loans with the intention of selling them - either immediately or at some time during the term.

VA Loan aren't required to reach any kind of income threshold to use their home loan benefits; however, borrowers are expected to have stable, reliable income that will cover monthly expenses – including their new mortgage payment.

Additionally, the VA requires that borrowers maintain a certain amount of income left over each month after all major expenses are paid. The excess is meant to cover typical family needs, such as food, transportation and so forth and is referred to as residual income. Residual income is a large reason why the VA Loan maintains one of the lowest foreclosure rates of all major lending options.

Being a private hard money lender can be exciting and rewarding. Making a large return on your investment can be enticing. In order to become a hard money lender, you will need to do the following:

Access to Money

High Risk and High Reward

Establish a Business

Get the Word Out