You can term residential real estate investment loans as opportunities to buy a new home. If you want to invest in a property, you can consider borrowing a private loan. Here, the focus is on a private loan. You can go to your bank for a home loan, but it won’t be an easy job. Banks have strict terms and conditions to give loans.
Let’s compare private lenders with banks
1. Loan processing
Private lenders are quick in processing loan applications. They can give loans within a business day. For example, if you apply for a private loan in the morning, you can expect to get the funds by the evening. In this way, you can rest assured of a quick loan. On the contrary, a bank can take a couple of business days to process a loan application.
2. Loan eligibility
Residential investment mortgage is available for everyone. Private lenders don’t have stringent requirements to give loans. They don’t consider credit score as a requirement for loans. But banks have strict rules to give loans. They consider credit scores, payment history, and the overall financial health of customers to give loans. Also, they give loans only to customers with high credit scores.
3. Loan repayment
Private financers can customize your loan repayment to make it easy for you to repay the loan. If you have any hassle in repaying the loan installments, you can talk to your financer. The financer will certainly find a solution to your problem. On the contrary, banks expect strict compliance with the terms and conditions of the loan.
4. Loan defaulter
You can’t default on a non recourse loan mortgage because your private financer won’t let you default on your loan. The financer will allow you to walk out of the loan if you don’t have any funds to repay the loan. But banks won’t let you go scot-free.
5. Availability
Private lending companies give loan for properties of all sizes and types. For example, you can easily get a loan for a small home. Similarly, you can get a loan for a sprawling estate. But banks are choosey in funding properties.
Residential real estate investment loans are the best financial products for property investment. A private lender can understand your needs and fund your property without asking many questions. On the contrary, banks can delay your loan process and demand strict compliance with the terms and conditions.