Private real estate financing entails obtaining a short-term mortgage loan through a private business or individual in order to purchase, carry out improvements on or refinance a property or home. In contrast to loans from banks, Fairbanks private mortgage loans are fast closing, have minimal eligibility criteria and offered to self-employed individuals.

This means that irrespective of the caliber of your credit score, you still have a high probability of obtaining private money for a real estate loan if your project is deemed to be profitable, you have sufficient money available for the down payment, you have shown yourself competent in the real estate market in the past, you have significant equity contained in the home or property or you can show an intelligible plan to repay the loan. Besides, if you would like a fast closing, you won't find any alternatives better than Fairbanks private real estate mortgages.

Most borrowers depend on Fairbanks private mortgage lenders when:

1. They are searching for funds to remodel a home and property and sell it at a much higher price or to rent it out for more money.

   Real example: one of our customers held a 2-family rental. He previously built up ample equity available in the building and the monthly rent checks was a recurring income source. While some remodeling work to the property would've helped him command more rent, a bank would have turned down the loan application, since his credit score was a mere 520. So the borrower got in contact with Read Rock Capital (Read Rock Capital) to do a cash-out refinance which got him a loan for 65% of the property's value.

2. They want to merge all of their debts into a single payment.

   Multiple debts with varying lending rates can be quite overwhelming and tough to keep an eye on. This is the reason some people make the decision to utilize the equity available in their residence to consolidate each of their outstanding debts into only one mortgage loan having a single payment per month.

3. They want to utilize the equity available in a current property to work on another real estate project.

   As one example, a borrower located in Hawaii owned a property valued at $1,200,000. Though it was challenging for him to get a purchaser for his house, he had found somebody who was open to lease it with an option to purchase it. The amount of rent was adequate to handle his ongoing mortgage payment, taxes and cost of homeowner's insurance. The tenant additionally included $200k towards a non-refundable advance payment as he signed the 3 year agreement. Having these sureties to cover the house's foreseeable financial obligations, he discovered another promising real estate opportunity and got in touch with Read Rock Capital for a private mortgage loan nearly 70% of the property's valuation. This enabled him to pay an advance on the downpayment for the new investment, and furthermore helped with his present mortgage.

4. They already have an existing loan and are unable to afford the pending balloon payment.

   A person who invests in real estate and has a previous private mortgage and is not able to afford the balloon payment caused by a change in circumstances can apply for refinancing from a different company. A refinance can help the person avoid missing the cut-off date for the balloon payment and avoid penalty charges.

Planning to discuss financing options with a private mortgage lender in Fairbanks? Submit the form or give us a call and let's talk about your project.