Category Archives: Arizona mortgages for bad credit

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
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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

Process for Obtaining Commercial Loans


There is really no shortcut when you are seeking commercial loans. But following a tried and true process can help to expedite the response to your application.

Most borrowers fail to understand that a great deal of the success or failure of their commercial loan application rests on their amount of effort in preparation. There is a huge amount of research and due diligence that a borrower must invest in the process in order to be successful when applying for commercial loans. Understanding the loan application process, the desires of specific lenders and their loan approval criteria are all very important and should be researched long before you begin to search for a commercial property to purchase.

Many borrowers are in awe of commercial lenders and fail to see them as a business partner or vendor. They get too caught up in the “bank” aspect and feel as if they are being judged. The lender is making a judgement but only from the perspective that they want to verify that you can afford the loan. They are just making smart business decisions. In that vein, you should also be making smart decisions about who you are interested in borrowing from. There are many options for commercial loans which you should explore including large national banks, medium sized regional banks, a small local bank, a private lender or a mortgage company just to name a few. If you are not familiar with any major lenders or to gain information about your options, begin with a meeting at your current bank to learn about their commercial loan products.

Each lender is going to have a slightly different set of criteria for approving a loan. Learning these requirements can help you to determine which lenders you will actually apply to. Set up a few appointments to speak to loan officers to learn about the lenders and what they have to offer you. Be prepared to discuss your business, the reason you are requesting a loan and how you plan to meet the financial responsibility of repaying the loan. These conversations can glean some very helpful free advice for you from seasoned lending professionals.

Select Lenders Who Best Meet Your Needs

Not all lenders are going to be a great fit for you or even a fit at all. If you are looking for a small loan then a national bank might not be interested in your application. Likewise, if you are seeking a very large loan, then a small local bank might not be your best choice. Try to determine which lenders specialize in the type of commercial loans that you are seeking and then apply only to those lenders. There are costs involved in commercial loan applications as well as a commitment of time. Don’t waste either by applying to a lender who will not be interested in your business.

Make a Great First Impression

Other than a brief introductory meeting, your loan application will be your first contact with many lenders. This is your only opportunity to create a positive and professional first impression. Invest all of the time that you need to research your options and the criteria that each lender uses to evaluate loan applications. Only then should you begin to compile your documentation and complete the loan application. This dedication to completing a high quality loan application and documentation packet will pay great dividends when you learn that you have multiple loan offers at very competitive rates.

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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Arizona Mortgages for Bad Credit score: FHA Loans

An FHA loan is a house loan backed by the Federal Housing Administration. It’s a sort of mortgage that enables decrease revenue and low credit score debtors to acquire house loans. In case you are looking out for Arizona mortgages for bad credit, and FHA loan often is the good choice for you.

When you’ve got low credit score, a house mortgage is a helpful device for rebuilding your credit score, however it might appear nearly not possible to acquire. Most banks will flip away debtors with a credit score rating of lower than 640. Nevertheless, almost 25% or 42.5 million credit score utilizing People fall into this class. If you end up looking out for Arizona mortgages for low credit score debtors, you may need to look into an FHA loan. There are FHA loan packages with a FICO Rating as little as 550.
The Federal Housing Administration is a authorities company that’s accountable for serving to to insure house loans. With a purpose to qualify for an FHA loan, an applicant should make preparations with an FHA accredited lending establishment. The federal authorities by way of the Federal Housing Administration then insures the lending establishment towards loss in case the borrower fails to pay their mortgage on time. The borrower pays an insurance coverage premium for this service of .eight% of the loan quantity upfront (often financed into the loan quantity) in addition to month-to-month PMI funds. With a purpose to qualify for an FHA the borrower additionally has to make a three.5% down fee at closing.  An FHA loan primarily serves people who can not afford to make a conventional down fee or who might have lower than good credit score.
Banks and lenders are extra keen to present out FHA loans as Arizona mortgages for bad creditas a result of there’s a two tiered system of insurance coverage to stop loss in case of default. The primary sort on insurance coverage is an upfront fee that’s rolled into the price of the loan. The second sort of insurance coverage is a mortgage insurance coverage premium or MIP. The MIP is paid month-to-month and is added onto the price of the mortgage fee. The MIP is a share of the loan quantity that’s decided by the worth to debt ratio of the property in addition to the size of the loan time period. When you resolve to acquire and FHA loan, it is very important needless to say you’ll make larger month-to-month funds because of a majority of these insurance coverage.
The FHA Mortgage Course of
When you’ve got been researching Arizona home loans for bad credit and have determined that an FHA loan is an efficient choice for you to buy Arizona actual property, it is very important know what to anticipate within the qualification course of. One key element is that the Federal Housing Administration doesn’t make loans. With a purpose to get hold of a loan that you must discover an FHA authorised financial institution or mortgage broker. Every financial institution can set its personal rates of interest and loan phrases so it is very important store round. A mortgage broker could also be a greater choice as a result of a broker can store totally different banks for you to search out probably the most favorable loan phrases.

Upon getting discovered a lender, the lender will assess you and decide if you happen to qualify for a loan. You may be requested for proof of revenue and the lender will run your credit score. When you’ve got low credit score, you could be charged a better rate of interest however will usually nonetheless qualify for an FHA loan as a result of authorities backing. As well as, FHA loans permit for sure financial set-backs that may permit many low credit score debtors to qualify for a house loan.

When you’ve got little credit score or low credit score, the FHA will even permit for a co-signer or co-borrower. Not like different loans, the co-borrower doesn’t need to stay on the property with you however you need to use their credit score rating that can assist you qualify for the loan. The FHA additionally has a hybrid adjustable charge mortgage program that may permit debtors with excessive debt to revenue ratios to make the most of low rates of interest to buy a house.
In case you are trying for Arizona home mortgages for bad credit,an 
FHA loan could also be a superb choice for you.
As with all loans, there are execs and cons associated to FHA mortgages. They could be a good device to assist low-income consumers or debtors with low credit score, or first time homebuyers with out the sources to make a hefty down fee. It is vital that you simply meet with an Arizona mortgage broker to debate FHA loans together with different packages associated to Arizona mortgages for low credit score. Speaking with a broker will make sure that you already know all of your choices and may make an knowledgeable resolution about your private home buy.

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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Arizona Mortgages for Bad Credit score: Adjustable Rate Mortgages

An adjustable price mortgage is a kind of mortgage out there in Arizona for people with lower than good credit score. If you’re wanting into Arizona mortgages for bad credit, an adjustable price mortgage is perhaps an excellent possibility.

You probably have bad credit report, you might really feel alone and like a failure. You might have bother getting a automobile loan, mortgage, or perhaps a retailer bank card. You might have even misplaced out on job alternatives on account of your FICO rating. This will really feel isolating and embarrassing. Nonetheless, you’re removed from alone. It’s estimated that roughly 25% of credit score utilizing People have bad credit report with a credit score rating under 640. As well as, the common credit score rating of a credit score holding American is about 678, which is way from good. In brief, you aren’t alone.
A wide range of components can result in a low credit score rating. Divorce, job loss, a sudden change in earnings, or a downturn within the economic system are all components out of your management that may decrease your credit score rating. If you end up within the place of getting lower than good credit score, you’ll be able to nonetheless qualify for a house mortgage. If you find yourself wanting for Arizona mortgages for bad credit report, it is very important know and perceive your whole mortgage choices in addition to the fee that the credit score could have in the long term. One possibility that may work for many households is an adjustable price mortgage.

Adjustable Rate Mortgages for Arizona mortgages for bad credit report

An adjustable price mortgage or ARM is an efficient choices for people needing Arizona mortgages for bad credit report. An ARM is a mortgage that’s totally different than a 30 yr mortgage in that it’s for a shorter time period, wherever from 1 to 7 years. Throughout that point interval you’ve gotten a low rate of interest, often under the prime price. This low price means decrease funds. The decrease month-to-month funds helps many people and households qualify for an ARM who wouldn’t have the ability to qualify for the upper funds of a standard mortgage. After the preliminary interval, the speed of an ARM adjusts or resets to a better than prime price. It will improve the month-to-month cost quantity based mostly on the rate of interest you’re being charged. Each ARM has sure maximums relying on the kind of loan. There’s a most quantity you could be above the prime price in addition to a most variety of occasions the loan can reset.
One of many main criticisms with adjustable price mortgages has to do with what occurs after the speed adjusts. As a result of the rate of interest will increase, the quantity of your month-to-month cost can even improve. Within the mid-2000s, the rise in funds mixed with the decline within the housing market led to numerous sub-prime foreclosures. This has led to many legislation makers and media shops to criticize ARMs as being irresponsible lending practices. Nonetheless, an ARM generally is a good possibility if you’re sensible about how you utilize it.
An essential factor to remember with an adjustable price mortgage and actually for any Arizona mortgages for bad credit report, is to not borrow greater than you’ll be able to afford. Should you can’t afford the cost on a $250,000 mortgage at a 30 yr price, don’t borrow that a lot utilizing an ARM, until you’re planning to maneuver lengthy earlier than your price resets. As well as, be sure to make sensible actual property decisions. Earlier than you buy a house have a look at the realm and the general value historical past. Don’t purchase until you’re comparatively sure that the house will improve in worth. Additionally, have a look at your credit score. It could be dangerous now, however are you taking steps to rebuild it? If the reply is sure, then you’ll be able to determine if it is possible for you to to refinance to a 30 yr mortgage earlier than your ARM resets. If it is possible for you to to refinance, you gained’t ever should make increased funds as a result of your mortgage price adjusts.
Lastly, an adjustable price mortgage isn’t solely for debtors needing Arizona mortgages for bad credit report. An ARM generally is a good possibility for many buyers who’re going to reside in a house for a short while, repair it up, and promote it for a revenue. It can be an excellent mortgage possibility for households who will solely reside within the dwelling for the preliminary time period of the mortgage and can promote and transfer earlier than it resets.

If an adjustable price mortgage appears like an excellent possibility for you, name a mortgage broker to study all the small print it’s worthwhile to know.

A broker might help you navigate the ins and outs of adjustable price mortgages that will help you select the fitting loan. Down cost minimums change and so do rates of interest. A broker can get you the very best deal to buy your new dwelling, no matter your bad credit report rating. Name as we speak to study extra.

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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