Category Archives: Arizona Mortgage with Bad Credit

Secured Real-Estate Lines of Credit: Benefits and Drawbacks


iStock_000002302749_Large (1)Looking to expand your businesses real-estate investment portfolio? Secured real estate lines of credit offer many benefits.A secured line of credit turns you into a cash buyer, and a secured real estate line of credit, you can make a full offer right away without having to wait for financing to come through. A secured line of credit can give you an edge over the competition when it comes to purchasing the best investment properties, while offering you savings over a standard term loan.

To qualify for this type of credit line, you’ll want to be a seasoned real-estate investor, whose properties are titled to an LLC or other legal business entity. Qualifying for this type of loan depends on how much income your business earns on a consistent basis and the total value of the properties currently titled to your business.



Eligibility in the case of secured real-estate lines of credit, comes down to the value of business assets and the financial strength of your business.

To get more specific about the qualifications for a secured line of credit, the sum of the loan you receive generally cannot exceed 65 percent of the value of your business’s currently held assets. In addition, your company should have a healthy balance of debt and income.

Because this is a business loan, its the financial strength of your company which counts for your lender, making your personal credit score a non-factor, which can make qualifying easier.

Secured real-estate lines of credit generally imply higher interest payments, and as with any secured loan, there is some risk to your personal property. However, if you can qualify, you could save a lot of money.

Business loans of any sort carry higher interest rates, but when compared to an unsecured line of credit, a secured line of credit generally offers lower rates, typically of 4-8 percent.However because a this line of credit is secured, your lender can confiscate whatever property you pledge should you default.

Nevertheless, applying for a secured credit line carries lower fees and little to no up-front costs. Application fees are virtually unheard of and there little in the way of underwriting costs.

But beyond the savings this type of loan offers you concerning fees, its primary benefit to you is what you could save in terms of interest. With a line of credit you only pay down and pay interest on what you spend, when compared to a conventional term loan this can result in massive savings.

In addition, secured lines of credit offer flexibility, once the loan closes you can spend the money in any way you see fit, with no restrictions on the type of property you can purchase. Compare this to a conventional loan where your lender will have to scrutinize the property you are purchasing.

Once you qualify for a secured line, your lender then gives you a lump sum which you draw from to finance individual purchases or spend as you see fit. So if your business can qualify a secured line of credit can help you rapidly expand, diversify your real-estate investment portfolio and could result in significant savings in terms of interest payments.

 Dennis Dahlberg Mortgage Broker[3][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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Arizona Investment Property Loans: Help for those who can’t qualify


FICO Score CardYou can still become a real-estate investor even if you are not rich, that is, if you can secure financing. Consider your options when it comes Arizona Investment Property loans. You still can get into the market even if you have poor credit, are self employed or if you currently find yourself a bit over-leveraged.

Your first and most obvious option is an Arizona Investment Property mortgage. This type of loan is the same thing as a regular mortgage, except that it is used to purchase an Arizona Investment Property. However, these loans come with very stringent borrower standards. Before applying for a conventional investment mortgage you should be able to meet the following criteria:

• Excellent credit: minimum score of 620 with the ideal range being between 700-800, if your current financial situation is less than ideal qualifying can be difficult if not impossible.

• A strong proof of income: In most cases lenders expect employment records going back two years which can be difficult if you are self- employed.

• An acceptable balance of debt and income: Don’t bother applying if your current debt payments exceed 36 percent of your current income. But you may want to invest in real estate as a way to get more income and pay down your current debts.

So if you don’t have excellent credit, have a steady income or if a lot of debt saddles you, what are your options?

If you have poor credit, are self-employed or have a few too many debts you may no be eligible in the case of standard Arizona Investment Property loans

You may be considering real estate investment as a viable option to help you with your current financial difficulties. Your present financial challenges will make it difficult if not impossible to qualify for a conventional investment loan. You may not have the steadiest income, but you may have substantial savings on hand. Still, because of this lack of steady income, you probably won’t qualify for a conventional loan. You may also be over-leveraged in terms of your primary mortgage or any other debts that you may owe. Again, a conventional lender will likely deny your application if this is your case.

Even though you may not qualify for a conventional investment mortgage, you still have financing options.

When it comes to Arizona Investment Property loans hard money might be the right help for you if you cant qualify for a conventional loan.

A hard money provider considers above all the tangible value of your Arizona Investment Property instead of your current financial situation. Even if your credit is less than ideal, you can still qualify in the case of hard money.

Any documentation a hard money provider will look at will be related to the property you aim to purchase, so in most cases, proof of income is not needed.

Even if you are over-leveraged, a hard money provider will consider the potential of the property you aim to purchase, rather than your current balance of debt and income.

So hard money gives options to those with less than perfect credit, those who are self-employed or for those whose outstanding debts make it difficult to qualify for a conventional investment mortgage.

A traditional investment mortgage should be the first type of financing you consider. But if you find yourself unable to qualify, hard money can allow you to get into the real-estate investment business.



 Dennis Dahlberg Mortgage Broker[3]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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Arizona Commercial Loans and Commercial Property types: Tips for individual investors


825082878If you’re not a real-estate conglomerate, you may be wary of taking on Arizona commercial loans to invest in commercial real estate. Learn about the general commercial property types, the amount of financing you should aim to secure and general strategies to maximize the returns from your Arizona Investment Property.

Commercial real-estate can be a confusing business, and if you are beginning to invest in real estate, you might consider avoiding commercial property altogether. While investing in commercial property is a bit more complicated than investing in residential property, there are some basic property types, prices ranges and general strategies that every commercial real estate investor should know.

Broadly speaking, there are three types of commercial real-estate you might consider purchasing. The first is multi-family housing (i.e., apartments), which is any form of accommodation with 5 or more units. The second class of properties are shopping centers, vacant storefronts or empty units in strip malls. The third class of properties are offices, and this property type is pretty self-explanatory There are of course other types of commercial real estate, but these are three classes an individual investor should consider.

When it comes to Arizona commercial loans is there a specific amount of financing for each type of property?

There is no specific amount of loan for each property type, but as an individual investor, you should start small.

When it comes to multi-family investments, look for properties that are in the 500 k to 5 million dollar range. When it comes to both offices and shopping centers,  your best bet at first is to start small and then scale up as you gain income and experience.

Shopping centers are capital intensive. Until you secure the right mix of tenants, your investment will not generate a whole lot of consistent income, so you don’t want to take out a massive loan at first. This same principle holds true for offices as well. Until you have a few long-term leases, you won’t likely see a steady stream of income from your investment, so start with a small loan.

Buying a large, expensive group of apartments, a massive storefront or a class A office building could mean you’ll be saddled with a loan you can’t afford. However, as you gain income and experience, you can then scale up and begin investing in larger commercial properties.

So start with a small loan and then scale up your investment efforts.

When it comes to Arizona commercial loans what is the best way to make money and generate a return from your investment?

Its simple, you want to build equity.  An overarching theme when it comes to all types of commercial property is to increase profitability. By increasing the profitability of commercial property, its overall value increases, allowing you to build equity.

You can increase the profitability of commercial property by making improvements, increasing rents or cutting down on expenses wherever possible. This general strategy holds true for all three commercial property types. After you have built up enough equity in your investment, you can simply hold onto it, or you can pay off your loan either by refinancing or by reselling your property at a profit.

So commercial real-estate investment doesn’t have to be complicated. As individual investor you need to the consider the type of property, you need start small until you have a steady return from your investment and you need to increase the profitability of your Arizona Investment Property in order to build equity.



 Happy senior business man making his notes at workDennis 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.

© 2016 Level 4 Funding LLC. All Rights Reserved.
Copyright | Privacy Policy | *Terms & Conditions

Why small town businesses are finding it hard to get commercial loans

Lenders are withdrawing from less populated areas, and small businesses in rural areas are facing difficulty finding sources of commercial loans.

Local banks have been consistently closing in rural areas. The in-person service, which was once so crucial for small business financing, is quickly becoming a thing of the past. Banks are relocating to more populated areas, and larger banks continue to consolidate smaller community banks. These larger banks use algorithms, rather than personal relationships to evaluate a borrowers creditworthiness.

This trend is making it harder for many rural borrowers to qualify for business loans.The value of small business lending in rural areas is now half of its 2004 peak. Much of this decline is a result of the recession, but the amount of small business lending in urban areas only declined by a quarter over this same period. The numbers demonstrate that business owners in more populated areas are not facing the same difficulties as their rural counterparts.

The decline is having a drastic impact on business activity in less populated areas. Research by Colorado State University economist Stephan Weiler demonstrates a link between the reduction in small business loans and new business formation in rural areas two to three years later. His research did not reveal a similar pattern in urban areas.

Community banks have been leaving rural areas for decades, making commercial loans harder to find

There has been a measurable decline over the past 20 years in the number of smaller community banks in rural areas. These community banks were once the sole source of credit for many small businesses in these areas. 625 of Americas 1,980 rural counties have no locally owned community bank. 35 rural counties in America have no bank at all, and 115 have only one branch.

Lenders cite specific difficulties in rural areas.”It’s very hard to find highly competent commercial loan officers who want to live in these small towns and can produce an adequate amount of production,” said Jerry Rexroad CEO of Carolina Financial Corp.

Rural businesses also lack the detailed information which is used by many larger banks to assess the creditworthiness of borrowers. However, economic difficulties in rural areas make it harder for banks to do business.

Economic difficulties are making commercial loans harder to find in many areas

Rural areas face unique economic challenges. Employment growth suffers due to weak school systems. Local businesses suffer due to competition with big-box stores and few small business owners have seen their credit situation improve since the recession. Business lending in rural areas has not picked up since the recovery began. Although new small dollar loans have been on the rise, rural areas have only seen a modest increase.. Only 10 percent of new small business loans, roughly 22 billion, have been issued in rural areas since the recovery began.

It remains unclear whether the banks themselves or the economy in these areas are to blame these hardships. Nonetheless small town businesses will face difficulty securing financing for the foreseeable future.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Tactics to use a hard money loan for commercial real estate investment

A hard money loan ( or asset-based loan) can act as a bridge to traditional financing and can help you get your next project off the ground.

This type of loan is typically a non-bank loan secured by the value of a”hard” asset. With a conventional loan, a borrowers credit score is usually the main factor that a lender considers. In contrast, asset-based lenders are more concerned with the value of the underlying property.

This type of lending is ideal to finance speculative projects an ordinary bank would consider too risky. Forgoing extensive credit checks allows these lenders to close loans sometimes within a matter of days.

Asset-based lenders can charge loan fees up to three times higher than a traditional lender. Borrowers will usually need more money up front to fully finance a project because this type of lender rarely underwrites the full cost of a project.

An asset based loan may be expensive initially, but their speed and ease in getting approved makes them a great resource to get a project off the ground.

Hard money loans can be the help you need to get your project started and act as a bridge to conventional financing

An asset-based loan can help you get your next investment project off the ground. Say there is a condominium with a purchase price of 400,000 dollars and an estimated repair cost of 50,000. A comparable property recently sold for 650, but the condo you want to purchase sits half empty.

A traditional lender would note the low occupancy and would in most cases avoid financing your project. With an asset-based lender, you could probably qualify for a loan of 60 percent of the projects total cost. You would still need 180,000 dollars of your own money, but with the initial hard money loan, you can get your project started.

Once you have made the repairs and the building reaches full occupancy, in most cases you could now qualify for a regular mortgage. You could then refinance to a mortgage for 75 percent of the property value of 650. Refinancing would then allow you to pay off the hard money loan and in this case leave you with 217,500 left over.

In the end, a hard money loan gives you options down the road and the funds you need to get your project off the ground. After your project is finished, you could sell the property, pay off the initial loan and still achieve a profit. After you refinance you can improve the property, raise rents, lease the property long term or sell the property for a profit.

If you are an Arizona based real estate investor consider Level 4 funding as your go-to

hard

money lender

If you are finding it to qualify for financing an asset based loan is a great way to get your real investment project started. Consider Level 4 Funding if you are an Arizona based real estate investor. Level 4 Funding offers short-term loans with a comparatively low APR of 9.6 to 12.5 percent.

Depending on your project you may qualify for a loan of up to 85 percent of the total project cost (or LTV). The LTV Level 4 offers can help you avoid the high up-front costs usually associated with asset-based loans.

Level 4 Funding can close your loan in as little as 1 to 3 days, which allows you take advantage of immediate opportunities. Level 4’s loans have flexible terms, with a minimum term of less than a month, which means you can the off at your convenience.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

Why There are Mixed Signals for Commercial Loans in 2018


Many are optimistic for 2018 to be a great year when it comes to commercial loans, but others are also preparing for some bad financial scenarios to hit this year.

The multifamily market on the west coast could be a cause for some concern. Rental rates have increased, causing the market to be unsustainable. Also, there is stiff competition among lenders, which leads to many dealing with commercial loans to expect an intense 2018 among lenders.

Because of this tough competition, lenders are starting to take more risks by approving higher-risk commercial loans. And if the market takes a turn for the worse, this could put many lenders in a bind. Even though signs do point to a stable 2018, lenders should be prepared in case of a sharp turn.

But the majority in the industry think that momentum from 2017 will carry over into 2018. They also this that not only will there be stability, but that the commercial industry could even see a 5 percent increase.

Many are optimistic for 2018, but some of the issues could be the start of a downfall in the market.

The issues with stiff lender completion and increase in rental rates could be the start of the marketing taking a turn for the worse. It might take a couple of years, but the impact could start in 2018. Especially if the issues continue or if new issues come up.

Some bad signs are also hitting office properties and retail stores.

More people are starting to work from home, which is becoming a bad sign for office properties. With people using their home as their office, there is no need for office spaces, which is leading to a higher vacancy. Retail stores are also starting to lay off more employees, which is another bad sign. That means that they could be on their way to going out of business, leading to the vacancy of even more spaces.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Know What to Expect When Applying for Commercial Real Estate Loans


If you are looking for a loan for your real estate property, then you need to know what to expect when applying for commercial real estate loans. There are many important components that you should be aware of during the application process.

Commercial real estate loans are not given to individuals, but to corporations, developers and other business entities. The funds can be used for a number of things for their business. It can be used for remodeling, adding more locations. If your business doesn’t have a strong credit history, then some lenders might be looking at the owner’s individual credit scores. To be sure of approval, it is best to have an excellent credit score, usually of around 700. So, make sure to keep that in mind before applying.

Be prepared to pay higher interest rates than those compared to residential loans. On top of higher interest rates will also be extra costs for the fees. These fees can include: legal fees, appraisal, loan application and survey fees. Keep these fees in mind when you ae shopping around for the best deals. You want to take these into consideration along with interest rates and other terms.

Also, be aware that you could face prepayment restrictions. Most of the commercial real estate loans come with certain regulations and terms. These will pop-up if you decide to pay off the whole amount of debt before the payment due date. This could result in having to pay penalty fees. This is actually a very common thing among lenders. It is usually calculated by multiplying the current outstanding balance by a certain penalty amount or interest guarantee. If the balance is paid off early, you may be responsible for paying a fee to the lender.

There are many different types of terms offered for commercial real estate loans.

The terms usually range from 5 years to 20 years, but the amortization period could end up being much longer than the actual term length of the loan. For example, a loan term could only be 7 years, but the amortization could be for 25 years. The length of the loan and amortization could affect the rate of the fees and the interest rate. But remember that most terms are negotiable. Just keep in mind that the longer period of the loan length, the higher interest rate.

Always take into consideration the factor of loan to value ratio.

The loan to value ratio measures the value of the loan compared to the value of the property that the loan is being used for. This is calculated by the lender and the category of the loan does play a role in this. If the loan to value ratio is high, then it is usually common for loans to be approved. Always talk about this with your lender before making any final decisions.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

How to Know What to Expect When Applying for Commercial Real Estate Loans


If you are looking for a loan for your real estate property, then you need to know what to expect when applying for commercial real estate loans. There are many important components that you should be aware of during the application process.

Commercial real estate loans are not given to individuals, but to corporations, developers and other business entities. The funds can be used for a number of things for their business. It can be used for remodeling, adding more locations. If your business doesn’t have a strong credit history, then some lenders might be looking at the owner’s individual credit scores. To be sure of approval, it is best to have an excellent credit score, usually of around 700. So, make sure to keep that in mind before applying.

Be prepared to pay higher interest rates than those compared to residential loans. On top of higher interest rates will also be extra costs for the fees. These fees can include: legal fees, appraisal, loan application and survey fees. Keep these fees in mind when you ae shopping around for the best deals. You want to take these into consideration along with interest rates and other terms.

Also, be aware that you could face prepayment restrictions. Most of the commercial real estate loans come with certain regulations and terms. These will pop-up if you decide to pay off the whole amount of debt before the payment due date. This could result in having to pay penalty fees. This is actually a very common thing among lenders. It is usually calculated by multiplying the current outstanding balance by a certain penalty amount or interest guarantee. If the balance is paid off early, you may be responsible for paying a fee to the lender.

There are many different types of terms offered for commercial real estate loans.

The terms usually range from 5 years to 20 years, but the amortization period could end up being much longer than the actual term length of the loan. For example, a loan term could only be 7 years, but the amortization could be for 25 years. The length of the loan and amortization could affect the rate of the fees and the interest rate. But remember that most terms are negotiable. Just keep in mind that the longer period of the loan length, the higher interest rate.

Always take into consideration the factor of loan to value ratio.

The loan to value ratio measures the value of the loan compared to the value of the property that the loan is being used for. This is calculated by the lender and the category of the loan does play a role in this. If the loan to value ratio is high, then it is usually common for loans to be approved. Always talk about this with your lender before making any final decisions.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
clip_image002clip_image004clip_image006clip_image008

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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

Technorati Tags: commercial loans,commercial lending,commercial mortgage

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How to Catch a Great Deal on an Arizona Mortgage with Bad Credit

After we go searching the place we’re at the moment staying, we’re all the time wishing to have the opportunity to transfer in a good spot with breathtaking out of doors views and native high quality delicacies. A few of these locations could be present in Arizona and that is a good spot to elevate a household, however how can anybody do this if they’ve a bad credit report ranking? How are you able to give your loved ones a house in a place they’ve all the time dreamt of? Don’t fret as a result of you’ll be able to all the time apply for an Arizona mortgage with bad credit report. A bad credit report loan permits people to discover a mortgage even with their bad credit report ranking. Though debtors will want endurance and perseverance, due to the difficultly to find a mortgage you probably have a bad credit report report. Nevertheless, there are some steps you need to use to enhance you probability of being permitted for an Arizona mortgage with bad credit report.
  • File an software to lenders who are usually not very specific with credit score scoring. It is because most lenders use a computer-based system that is known as credit score scoring, to assess house loan purposes. The information they gather from the applying is given a ranking. If the pc exhibits a rating with unhealthy dangers, the applying is robotically declined earlier than an precise individual has a probability to hear the loaner’s story. In the event you apply to a lender who doesn’t use credit score scoring, a actual individual assesses the applying and any previous causes for having a bad credit report. This individual will then consider the loaner’s private scenario, which will probably be used within the decision-making course of.
  • Keep away from mortgage insurances as a result of in case you apply for a house loan, you may be required to move two approvals. The primary one is from the lender and the opposite one is from the mortgage insurer who protects the lender in case you fail to pay the loan.
  • Search skilled recommendation concerning your credit score report. There are a variety of credit score restore specialists or businesses that may assist clear up your credit score report. Converse to them or to a solicitor if there are any prospects of eradicating unhealthy entries on your credit score report.
  • Don’t store for too many lenders. It’s a should that you don’t apply to a number of lenders while you seek for a house loan. It is because every time you flip in an software, it’s recorded on your credit score report. If any lenders occur to reject your software, it’s going to make a large affect on your credit score report.
  • Apply for an FHA-insured loan supplied by an FHA-approved lender. As a result of it’s government-guaranteed, they permit lenders to serve shoppers who’re thought of “high-risk” due to an undesirable credit score report. The FHA doesn’t comply with strict tips utilized by standard lenders. 

In addition they require a smaller down fee in contrast to standard loans. The funds may also be borrowed or be given as a reward by a relative or a non-profit financing company.
These steps may also help people planning to catch a deal with an Arizona mortgage with bad credit. After being permitted for a loan, you need to work hard to show to a lender that your bad credit report is simply a a part of your previous and as well as, you’ll attempt actually hard to keep away from coming throughout the identical issues sooner or later. At Stage 4 Funding, we consider that taking these steps to apply for a loan is value it in case you are searching for a house in Arizona. Name us in the present day at 623-582-4444.

Stuck Applying for Arizona Bad credit home loans? We got you covered!


                Nearly all of us are usually not comfortable with our way of life and the place we’re staying. However regardless of how hard we attempt, we can’t simply switch from one location to one other. We’re content material to keep the place we’re as a result of it’s going to imply that one other loan software have to be made. That is straightforward for many who have a good credit standing however those that have a bad credit report ranking, might discover it hard to search for their dream house setting. Nevertheless there may be a resolution, which is to search for Arizona bad credit report house loans. A lot of these loans enable debtors to acquire a house loan inside their tastes, even with bad credit report historical past.
With a bad credit report house mortgage, it appears as if people who need to buy a new Arizona house have hit the jackpot. As a result of Arizona is a dream place for almost all Individuals with its stunning climate situations, breathtaking pure views and scrumptious meals, they might not ask for extra. If potential consumers are nonetheless having a hard time with the applying course of, listed here are some options to use for fear free Arizona bad credit home loans.
  • Verify credit score reviews  As a result of all Individuals are entitled to have a free yearly credit score report from the Federal Commerce Fee, debtors simply want to be certain that their report is correct earlier than they will move for a mortgage. If the FTC discovered any errors or inconsistency within the reviews, they might report it to the credit score firm and supply them with documentation to help their plea.
  • Anticipate to pay extra curiosity Due to a borrower’s bad credit report report, they need to count on to pay extra for his or her mortgage. Debtors want to put together to pay for a increased rate of interest or an ARM (Adjustable Charge Mortgage) with a altering rate of interest
  • Get rid of different debt Due to a excessive debt to revenue ratio, potential debtors may have a hard time to reaching a correct mortgage. All credit score balances must be paid off in order that new consumers could be permitted for a house loan.
  • Show a secure revenue New homebuyers want to show to their lender that their bad credit report ranking is a factor of the previous. Additionally it’s smart to reinstate how you’ve got modified the methods you deal with your loans. Debtors ought to assure lenders that their job is secure and they’re ready to make well timed funds.
  • Write down explanations concerning the unfavourable gadgets There are occasions the place it’s best to clarify to lenders the explanation behind issues in paying payments. It’s best to do clarify issues earlier than making use of for an software. Moreover, a good motive to do that is so lenders may have an understanding that debtors issues are up to now, which can lead to an permitted loan software.
  • Think about authorities packages They’re loans assured by the federal authorities, which seemingly may have versatile credit score necessities. That is good for people with bad credit report scores.
  • Instantly search for a cosigner New homebuyers may ask relations to cosign for them, which could assist them qualify for a mortgage regardless of bad credit report. Debtors simply want to needless to say in the event that they fail to pay their debt, their cosigner is the one who will shoulder the remaining funds.

For many who are contemplating Arizona bad credit home loans, don’t assume twice as a result of Arizona is a good spot for constructing and elevating a household. Dennis Dahlberg is certainly a well-known household man and data loan skilled. Give him a name in the present day at 623-582-4444 to be taught extra about a bad credit report loans and how one can get permitted.

Dennis Dahlberg
Dealer/RI/CEO/MLO

Stage 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917

www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027



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How to buy a house with bad credit in Arizona

Adjustable Price Mortgages and FHA Loans: How to buy a house with bad credit in Arizona

In case you have bad credit, you could have most likely been turned away by a financial institution for those who utilized for a dwelling loan. You might suppose that proudly owning a house is inconceivable. Nonetheless, there are a variety of applications that may enable you qualify for a dwelling loan. The perfect first step is to ditch the financial institution and discover a firm that specializes in serving to people and households work out How to buy a house with bad credit in Arizona. A superb first cease is a mortgage broker. In contrast to a financial institution, the broker doesn’t truly loan out the money for a dwelling loan. As an alternative he outlets completely different banks to enable you discover the most effective loan to your buy and credit state of affairs. This permits extra flexibility in phrases of the varieties of loans that the broker can discover in addition to lenders. A mortgage broker or mortgage firm can act as your middleman and normally get you higher loans and higher phrases than you could possibly get by going straight to a financial institution, particularly if in case you have bad credit.
After getting discovered a mortgage broker or private mortgage firm, you’ll start to work out How to buy a house with bad credit in Arizona. Your mortgage skilled provides you with a number of choices together with typical loans, FHA loans, and adjustable fee mortgages. It can be crucial that you just perceive the variations in the varieties of loans in addition to the phrases of the loans to enable you make the most effective determination for the way to buy your private home.

Types of Bad Credit Loans in Arizona

One sort of loan you mortgage investor will most definitely focus on with you is a typical loan. A traditional loan is a conventional 30 12 months mortgage with a mounted rates of interest. Most present applications require not less than at 5% down fee. That is the loan most frequently given out by banks and is normally the toughest to qualify for with bad credit. Nonetheless, your broker could know of private fairness firms and buyers that give out typical mortgages for sub-prime debtors. You’ll normally find yourself paying a increased rate of interest primarily based in your low credit rating, however the rate of interest is mounted for the lifetime of the loan. Additionally, for those who plan on utilizing on time mortgage funds as a approach to rebuild your credit, you possibly can refinance later when rates of interest are low.
One other sort of loan that’s supplied to bad credit debtors is an FHA loan. An FHA loan is a authorities backed loan. Every month you pay additional insurance coverage towards default. The loan is secured by the Federal authorities so lenders are extra seemingly to give them to debtors with bad credit. So as to qualify for an FHA loan you have to to have three.5% of the acquisition worth to put down. Additionally, you will pay additional for month-to-month mortgage insurance coverage which might range primarily based on the quantity of your loan. For a lot of bad credit debtors an FHA loan is a good path for dwelling possession.
A 3rd sort of loan your mortgage skilled will focus on is an adjustable fee mortgage or ARM. An ARM is a mortgage that has a mounted rate of interest for a set interval of 1 to 7 years. Throughout that interval you’ll pay a comparatively low rate of interest, normally decrease than the prime fee. After the preliminary mounted interval, the speed will reset to a increased fee and your mortgage fee will improve. Debtors with bad credit can reap the benefits of this program as a approach to personal a dwelling as a result of the preliminary funds are low due to the low rates of interest. Maintain in thoughts that after the speed resets your fee will improve considerably. An ARM is a good choice for debtors who plan on both promoting or refinancing earlier than the speed resets.

Cease asking your self How to buy a house with bad credit in Arizona and discover a Arizona Mortgage Broker to assist reply that query in the present day.


Though these are a few varieties of loan accessible for bad credit debtors in Arizona, there are lots of different choices like private and hard money loans. As well as, state and federal applications change continuously so there are at all times new paths to homeownership. Cease letting your credit rating stand in the best way of proudly owning your dream dwelling. Contact a mortgage broker or funding agency to take the subsequent steps in discover the right dwelling for your loved ones, and the right dwelling loan to your pockets.

Dennis Dahlberg
Dealer/RI/CEO/MLO

Degree 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917

www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027



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