Private Real Estate Mortgages in Middletown
Private real estate financing entails finding a short-term loan via a privately owned business or individual as a way to purchase, carry out improvements on or refinance a property or home. Middletown private mortgage loans have many advantages — they are fast closing, have minimal eligibility criteria and are also open to self-employed borrowers.
It means that even if you do not have a great credit score, you've still got a good chance of qualifying for private money for a real estate loan as long as your investment is regarded as profitable, you have adequate capital to set aside for the downpayment, you have demonstrated yourself capable in earlier real estate ventures, you have considerable equity in the home or you can show a clear plan to repay the loan. Besides, if you want a fast closing, you won't see any options better than Middletown private real estate mortgages.
Typically, clients approach a private mortgage lender in Middletown when:
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They want to find funds to repair a property and put it up for sale at a much higher price or to up the lease amount for tenants.
For instance, there was this customer with a two-family rental. He already had a lot of equity available in the property and the rent brought in a steady income. He sought to do some modifications to the property in order to keep his rents high, but a below average credit score of 520 meant a bank would turn down the loan application. Hence, the client called Read Rock Capital (Read Rock Capital) to complete a cash-out refinance which in turn got him financing for 65% of the property's assessed value.
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They would like to merge their unsecured debts into one loan.
Many people find that it's stressful to make countless payments on a monthly basis. For this reason, some people choose to take advantage of the equity in their house to consolidate their unsecured debts into only one private mortgage loan which has a single payment per month.
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They wish to make use of the equity within an existing property to work on a different real estate project.
Here is an example. A borrower in Hawaii owned a property appraised at $1,200,000. When he could not find a buyer for his house, he signed a lease-option-to-buy contract with somebody. The amount of rent was adequate to pay for his ongoing mortgage payment, property taxes and cost of homeowner's insurance. He also was given a $200,000 non-refundable down payment for the 3-year lease contract. Having these assurances to cover the property's foreseeable financial obligations, he came across a new real estate investment opportunity and approached Read Rock Capital to obtain a private mortgage loan close to 70% of the home's appraised value. The money helped him cover the cost of his next investment property and also pay down his initial mortgage.
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The balloon payment for an existing loan is owed soon and they cannot afford it.
A person who invests in real estate and has a prior private mortgage and is not able to afford the balloon payment as a result of a change of circumstances can fill out an application for refinancing from an alternative lender. A refinance can help the borrower hit the cut-off date for the balloon payment and prevent any penalty charges.
Planning to discuss mortgage options with a private mortgage lender in Middletown? Enter your info into the form or call us and let's talk about your property or properties.
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