A lot of real estate investors turn to private real estate financing to purchase a new home, or rehab or refinance an existing one. Harrisburg private mortgage loans have many advantages — they close fast, are easy to qualify for and additionally, are offered to self-employed individuals.

That means that even if you do not have a great credit score, you still have a good chance of getting private money for a real estate loan so long as your real estate project is deemed to be profitable, you have enough capital reserved for the downpayment, you have proven yourself able in earlier real estate investments, you have considerable equity in the property or you have a well-defined plan to pay back the balance of the loan. And with fast closings of just two weeks, private real estate mortgages in Harrisburg are an ideal solution for ambitious real estate investors.

Mostly, people confer with Harrisburg private mortgage lenders to fund their projects when:

1. They are searching for capital to renovate a property and put it up for sale at a higher price or to rent it out for more money.

   E.g. one of our borrowers had a twin-home / duplex. He previously built up adequate equity in the property and the rent was a recurring source of income. He desired to perform some modifications to the place so that he could keep his rents high, but a below average credit score of 520 meant that a bank would turn down the mortgage request. Thus, he reached out to Read Rock Capital to get a cash-out refinance and got a loan at 65% LTV.

2. They want to combine all of their financial debts into one single loan.

   Countless debts with a variety of rates can be extremely overwhelming and hard to keep an eye on. This is why some people choose to take advantage of the equity in their residence to combine their outstanding debts into a single mortgage having a single monthly payment.

3. They wish to release the equity in one property and purchase a different one.

   One of our borrowers in Hawaii had a residence worth $1M. When he was unable to find a buyer for the property, he inked a lease-option-to-buy arrangement with someone. The rental agreement payouts served to meet his current mortgage, property taxes and homeowner's insurance. The renter additionally put two hundred thousand dollars towards a non-refundable advance payment as he signed the 3 year contract. These assurances meant that he no longer had to be concerned about the home's future financial obligations, and so when another promising real estate opportunity showed up, he came to Read Rock Capital and got a private mortgage loan at 70% LTV. Meaning that he could make his downpayment for the new property, and also repay his present mortgage.

4. They need help to satisfy the balloon payment for the existing private loan.

   If a person can't make a balloon payment because of unexpected causes, he can try and refinance his loan with a different loan company. A refinance will help the borrower hit the due date for the balloon payment and avoid penalties.

Looking to connect with a private mortgage lender in Harrisburg to go over financing options for your upcoming project? Enter your info into the form or give us a call and let's talk about your property.