Category Archives: real estate investing

Rental Property Loans: Things to consider when it comes to Conforming Mortgages.


4page_img1When it comes to rental property loans, conforming mortgages are the lowest cost financing option available. Learn about the basic providers of this type of financing, what they will expect from you as a borrower and whether or not this is the right financing option for you.

A “conforming mortgage” is essentially the same thing as a standard home loan. The main difference is that you the borrower use the loan to purchase an Arizona Investment Property instead of a primary residence. Because you are using the loan proceeds to buy an Arizona Investment Property, lenders charge more for this type of loan and expect more from you as a borrower. Simply put, you are going to pay your primary mortgage first and foremost before paying the mortgage on your Arizona Investment Property.

This added risk makes this type of loan a bit more expensive than a standard home loan.

When it comes to conforming mortgage providers, lenders fall into three broad categories, online, businesses investment lenders and traditional banks.

Online providers offer convenience when compared with the other two types of lenders because you don’t have to go to a physical location to apply.  With online lenders, you can complete the entire lending process from the comfort of your home. Business investment lenders are ideal for borrowers who are a, businesses and b, looking for greater flexibility. The other two types of mortgage providers don’t usually lend for commercial or multifamily purchases. A traditional brick and mortar bank is best if you are looking for a provider with insight into your local market. In addition, one-on-one meetings with your lender in this situation, give you the opportunity to build a relationship, which you could leverage to secure a better deal.

In the case of Rental Property Loans, and specifically conforming mortgages, your eligibility will come down to a specific set criteria.

No matter which type of mortgage provider you choose there are basic standards borrowers should know before approaching any investment lender.

Basically, you can’t have a credit score lower than 620. Don’t have your debts take up more than 25 percent of your regular income, this is known as Debt to Income Ratio. If your debt to income ratio, it exceeds the 25 percent standard, expect your application to run into difficulties. If your score is lower than 620, or if you have a lot of outstanding debt you are better off considering alternative forms of financing.

When it comes to rental property loans, a standard conforming mortgage may not always the right help for you.

There are many situations where a “conforming mortgage,” might not meet your needs.

Conforming mortgages,  conform to the standards set by Fannie  Mae and Freddie Mac. Therefore there are specific situations where no matter how great your credit is, you will not qualify for a conforming mortgage.

The property you aim to purchase may be in deplorable condition. No conforming mortgage lender will be able to approve a loan on a property that falls short of FHA guidelines.If the property you want to invest in is in shambles you should look into a  rehab loan first.

Another situation is where you have 4 or more outstanding mortgages, the more mortgages you have the great scrutiny a lender will have give to your credit profile until you essentially need perfect credit to qualify. If this is your case, look into a blanket mortgage.

However, conforming mortgages are perhaps the most comfortable option for those just getting into the rental business. Before looking into a conforming mortgage, consider which type of lender can meet your needs, know the basic standards of qualification and whether or not a conforming mortgage is really best type of financing for your specific situation.

 Dennis Dahlberg Mortgage Broker[3][2][2][2][2][2]Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC 
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701 

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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What You Need to Know About Non-Performing Notes for Sale

kirahC
Non-performing notes
You might need come throughout non-performing notes for sale lately. These are accounts the place assortment makes an attempt have been unsuccessful. If you happen to suppose this feels like a troublesome factor to buy, that’s the place you could be incorrect. Shopping for these non-performing notes for sale is definitely simpler than you suppose as a result of many lenders are prepared to promote non-performing notes at a loss.
Meaning earnings. You see, non-performing notes for sale are literally secured money owed. What does that imply? Good new for you; even when the loan fails to revive its efficiency, the be aware proprietor remains to be entitled to the property. General, investing in notes for sale could be a wonderful various to excessive depth foreclosures auctions.

What are you able to do to buy a non-performing notes that’s for sale?

It’s straightforward if you happen to observe the following tips:
  1. Contact a trusted loan broker in your space. They’ll enable you discover non-performing notes for sale.
  2. Assessment the mortgage agreements of any non-performing notes that you simply buy and decide what you want to do after wanting on the fee document. A foreclosures is perhaps the best factor to do on mortgages which might be greater than 90 days late on funds.
  3. Supply a modified loan reimbursement plan to the mortgagor. Since you should have paid such a low worth for the non-performing notes that’s for sale, there’s a great likelihood you would possibly find a way to decrease the minimal month-to-month fee. Moreover, decreasing the worth means you should have a better likelihood of getting the loan to carry out.
Furthermore, in case your fee plan does fail, as they often do, then sadly it’s time to go forward with the foreclosures course of. This course of is difficult and might take anyplace from six weeks to six month relying on what sort of property is held and what actions the mortgagor takes. Whereas that is after all time consuming and annoying, the solar will seem as soon as the method is over and also you get full authorized possession of the property.
Private Hard Money Lender in Arizona
Huge Daddy Dennis Exhausting Cash Lender
Arizona Hard Money
Stage 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix AZ 85027
623-582-4444

What You Need to Know About Non-Performing Notes for Sale

kirahC
Non-performing notes
You may need come throughout non-performing notes for sale not too long ago. These are accounts the place assortment makes an attempt have been unsuccessful. If you happen to suppose this seems like a troublesome factor to buy, that’s the place it’s possible you’ll be flawed. Shopping for these non-performing notes for sale is definitely simpler than you suppose as a result of many lenders are keen to promote non-performing notes at a loss.
Which means income. You see, non-performing notes for sale are literally secured money owed. What does that imply? Good new for you; even when the Mortgage fails to revive its efficiency, the observe proprietor continues to be entitled to the property. Total, investing in notes for sale may be a superb different to excessive depth foreclosures auctions.

What are you able to do to buy a non-performing notes that’s for sale?

It’s simple for those who comply with the following tips:
  1. Contact a trusted Mortgage broker in your space. They’ll enable you discover non-performing notes for sale.
  2. Evaluate the mortgage agreements of any non-performing notes that you just buy and decide what you want to do after trying on the cost file. A foreclosures could be the simplest factor to do on mortgages which can be greater than 90 days late on funds.
  3. Provide a modified Mortgage compensation plan to the mortgagor. Since you’ll have paid such a low value for the non-performing notes that’s for sale, there’s probability you would possibly have the option to decrease the minimal month-to-month cost. Moreover, reducing the worth means you’ll have a better probability of getting the Mortgage to carry out.
Furthermore, in case your cost plan does fail, as they often do, then sadly it’s time to go forward with the foreclosures course of. This course of is hard and might take wherever from six weeks to six month relying on what sort of property is held and what actions the mortgagor takes. Whereas that is after all time consuming and annoying, the solar will seem as soon as the method is over and also you get full authorized possession of the property.
Private Hard Money Lender in Arizona
Massive Daddy Dennis Onerous Cash Lender
Arizona Hard Money
Degree 4 Funding LLC
23335 N 18th Drive Suite 120
Phoenix AZ 85027
623-582-4444