Low Home Appraisal

Avoiding Low Home Appraisal

Every mortgage loan borrower, whether they are a home purchase mortgage loan borrower or a homeowners who is a refinance mortgage loan borrower, needs to get a home appraisal. A home appraisal is mandatory from the mortgage lender. The home appraisal is what the mortgage lender goes by when securing their collateral and uses the value of the home appraisal in determining the actual value of the home and not the real estate purchase contract. A Low Home Appraisal can be detrimental for both the home buyers and home sellers and can be the cause of the mortgage loan process to be halted and the end of the transaction. There are ways of avoiding low home appraisal.

Pricing The Home Right

Every home seller wants to get the most for the home they are selling and every home buyer wants to get a deal on the home they are purchasing. Avoiding a low home appraisal can greatly be avoided by doing extensive research on the comparable homes in the area that have sold recently. The listed homes do not count. The home appraiser goes by comparable homes that have been sold and closed and recorded on public records. The homes that sold and closed needs to be in close proximity to the subject property and needs to be similar in square footage and type of construction.

Foreclosures Can Hurt Home Sellers

Low home appraisal is possible for homes that is worth more than the appraised value by the home appraiser if the home appraiser has used foreclosure home sales as comparables in the area. If there are many foreclosure homes that sold in the area you are selling your home, you may want to wait until homes that are not foreclosure homes have sold and closed. Unfortunately, home appraisers will use foreclosure homes as comparables if other homes in the area have not sold and closed.

What Happens If I Get Low Home Appraisal

Most home sellers have experienced real estate agents who do an extensive market analysis and help the home sellers in pricing the sale price of their homes at the right price where there is no issues with low home appraisal issues. However, there are times where a home buyer will get a low home appraisal. If you are a home buyer and get a low home appraisal, do not panic. Everything can be worked out. Your home buyer’s real estate agent and your real estate attorney will be working this low home appraisal issue out with the home sellers, home seller’s realtor, and home seller’s real estate attorney to come to a resolution. In most cases, if the home appraisal is not too much lower than the real estate contract purchase price, the home sellers will normally drop the purchase price and an addendum to the contract with the new negotiated purchase price is written up.

Re-Negotiation After Low Home Appraisal

If the home appraisal comes in substantially lower than the initial agreed upon purchase price, then a re-negotiation is in order. Home sellers with a low home appraisal normally understand and want to work things out with the home buyers. Most of the time, an appraisal rebuttal is useless unless you have solid comparable sales that you can present to the home appraiser. The home buyers mortgage lender will only go off the home appraised value and not the negotiated purchase price. A home buyer and home seller can re-negotiate the purchase contract where they can meet somewhere in the middle pricewise where the home buyer will pay between the original purchase price and the low home appraisal value. If this is the case, then the home buyer needs to come up with the cash difference from the appraised value and the negotiated purchase price. The mortgage loan and down payment will be based on the appraised value of the home. Whatever sellers concessions the home seller gave the home buyer may no longer apply on low home appraisal issues.

Sellers Concession Towards Closing Costs

What Is A Sellers Concession?

On every home purchase, no matter what state the home purchase is, there are closing costs associated with the home purchase transaction. Home buyers need to put down a down payment plus they will have closing costs associated with the purchase of the home. All mortgage loan programs allow a home seller to offer a home buyer a sellers concession towards closing costs. The home buyer can then use the sellers concessions to offset their closing costs where in many instances, the can cover all of the home purchase closing costs and all they need to worry about is coming up with the down payment.

What Does Closing Costs On Home Purchase Cover?

Closing costs on a home purchase transaction covers all costs and fees associated with the origination of the mortgage loan and all costs and fees associated with the purchase of the home. Examples of closing costs includes origination fees, credit reporting fees, underwriting fees, title charges and fees, attorneys fees, recording fees, homeowners insurance premium, pre-paids ( 2 months tax and insurance escrows ), appraisal fees, home inspection fees, and any other fees and costs in the purchase of the home.

What Is The Maximum Sellers Concession A Buyer Can Receive?

The maximum sellers concession a home buyer is allowed to accept depends on the mortgage loan program. FHA allows a maximum of 6% sellers concession, VA allows a maximum of 4% sellers concession, Conventional Loan programs allows a maximum of 3% sellers concession on owner occupant and second homes and 2% on investment properties. Home buyers can use all of the sellers concessions for closing costs only. Home buyers cannot use sellers concessions towards the down payment of the home. Any surplus of sellers concessions needs to go back to the home seller and the seller cannot give a home buyer a kickback of the left over sellers concessions in any way or form. It is best for the home buyer and mortgage loan originator to make sure that the sellers concessions is not wasted and that any surplus of the sellers concessions will be used such as by buying down the rate for a better rate. Home buyers can pay points to buy down their rates and on cases of sellers concessions overages, that is how mortgage lenders use the surplus sellers concession is to buy down the rate by buying points.

Why Would Sellers Give Sellers Concessions?

Sellers concessions is very common and most home buyers do get sellers concessions by home sellers. Home sellers are not giving out free money for the sake of helping a home buyer. Sellers concessions normally helps a home buyer qualify to purchase home where otherwise they would not qualify. Most home buyers need to scrap by to get a down payment of 3.5% for FHA Loans or 3% to 5% down payment for Conventional Loans and closing costs can add to another 3% or more of the purchase price. Lets take a case scenario on how home sellers give sellers concessions towards a home buyers closing costs: Say a home seller wants to net $100,000 on a home purchase and wants to help the home buyer with closing costs of $4,000 on a FHA Loan. The home seller and home buyer will negotiate a purchase contract for $104,000 with a $4,000 sellers concession towards the home buyers closing costs. The home buyer will have $4,000 to cover his or her home closing costs and the home seller will net his $100,000 price.

Fixing Credit To Qualify For Home Loan

Tips In Fixing Credit To Qualify For Home Loan

It is highly recommended for home buyers or homeowners thinking of refinancing in checking their credit and credit reports for any errors they may have on their credit reports and see if they can maximize their credit scores so they can qualify for a mortgage loan and if they do qualify for a home loan, have the best credit scores possible to get the best mortgage rates. Mortgage rates are determined by the mortgage loan borrower’s credit scores and the higher the borrower’s credit scores are, the lower the mortgage rates the borrower will have.

Quick Tips In Improving Your Credit Scores

There are some quick tips where you can boost your credit scores. If you have maxed out credit cards, the chances are that you will have lower credit scores. Paying down your credit card balances will definitely boost your credit scores. The higher your available credit balance is, the more positive impact it will have on your credit scores. Having no active credit trade lines will have a negative impact on your credit scores. If you have no active credit trade lines, you should get three to five secured credit cards with at least $500 credit limits. Each one of those secured credit cards should boost your credit scores by 10 to 20 FICO points and as those secured credit cards ages, it will have more of a positive impact on your overall credit profile. As your secured credit card ages and you develop a perfect payment history with the secured credit card company, the secured credit card company will eventually get you a credit limit increase without having to put any more additional deposit. Once you have a timely payment history with your secured credit cards and your credit scores are at least 700 FICO, you will be able to qualify for traditional unsecured credit cards. Do not apply for unsecured credit cards if your credit scores are below 700 FICO.

Credit Repair Prior To Applying For Mortgage

If you are planning in enrolling in a credit repair program, make sure you do it well in advance of applying for a mortgage loan. The main reason is because credit repair involves disputing negative credit items to the three credit reporting agencies and there are strict mortgage lending guidelines when it comes with credit disputes during mortgage process . You cannot have any credit disputes on non-medical collection accounts with credit balances that totals $1,000 or more ( total of unpaid collection accounts ) to qualify for a FHA Loan. You need to get the credit disputes retracted in order for the mortgage process to proceed. You can qualify for FHA Loans with unpaid collection balances and charge offs. Charge off accounts and medical collection accounts are totally exempt and do not count under FHA federal mortgage lending guidelines. However, if you have more than $2,000 of unpaid collection account balances of $2,000 or more on non-medical collection accounts, then 5% of the unpaid collection balance will be used to calculate the mortgage loan borrower’s debt to income ratios. Cases where the mortgage loan borrower has a large collection account balance like $10,000, then 5% of the $10,000 unpaid collection balance or $500 will be used as the mortgage loan borrower’s monthly debt and will be used to calculate their debt to income ratios even though they do not have to pay the $500 per month. For those mortgage loan applicants with large collection account balances and prior bad credit, it is highly recommended that they start a credit repair program to see if they can have their collection accounts and negative credit items deleted off their credit report. However, credit repair does take time and home buyers should start credit repair program well ahead of time of them actually applying for a mortgage.

What Is A Short Sale?

What Is A Short Sale And How Does It Work?

A short sale is when a mortgage lender approves the sale of a homeowner’s home for a value less than the amount the homeowner owes on their mortgage loan balance. After the 2008 Real Estate and Mortgage Meltdown, real estate values have collapsed where many homeowners who had equity in their homes were left with home mortgages that were higher than the amount they owed on their mortgage loans. Since the economic and the real estate meltdown, many homeowners have seen their home values go back up and many, especially in California, Florida, Illinois, Texas, and other parts of the country. However, there are still homeowners who still have mortgage loan balances that is higher than the balance of their homes. In order to sell their homes, they need to come up with the difference on what they owe from the sales price of their home. With a short sale, the homeowner has the mortgage lender’s blessing to sell their home at the current market value and will often forgive the debt that they owe.

Short Sale Process

If a homeowner is going through financial hardship and they owe more on their mortgage loan balance than the value of their homes, their mortgage lender may accept a short sale. Getting approved for a short sale is a process. Mortgage lenders will want to see financials of the homeowner and the reason why their mortgage payments is a hardship. After carefully reviewing the mortgage loan borrower’s financials and credit, the mortgage lender can approve a short sale. The homeowner can choose a realtor of their choice. The mortgage lender will do their own due diligence on pricing the home and will research recently sold properties in the area. Once a listing price is decided, the homeowner can have their real estate agent list the property. Once a potential home buyer submits a real estate purchase offer, the homeowner has no say so whether or not to accept the real estate purchase offer. The real estate purchase offer needs to be submitted to the mortgage lender who holds the note. Most mortgage lenders take their sweet time in reviewing the real estate purchase offer and sometimes it may take weeks or months before getting back to the home buyer with a counter offer. Short sales are a long process and take much longer to close than traditional home sales because banks and mortgage lenders normally take long.

Can A Homeowners Who Short Sales Qualify For Another Home Loan?

A short sale will definitely affect the credit and credit scores of the homeowner. However, homeowners with a prior short sale can definitely qualify for another home loan after short sale. If the homeowner has been timely with their mortgage payments and all other monthly debt payments up to the date of their short sale for the past 12 months, there is no waiting period to qualify for mortgage after short sale. Unfortunately, most mortgage lenders want the homeowner to skip at least one months mortgage payments for the short sale to be effective and this 30 day late payment on their mortgage payments will trigger a three year waiting period after short sale for FHA Loans and a four year waiting period after short sale for Conventional Loans.

Credit After Short Sale

A short sale will most likely trigger a 100 plus point drop in the homeowner’s credit scores. However, the credit scores will eventually go back up as the short sale ages. Homeowners who had short sale should start re-establishing their credit by adding positive credit and being timely with all of their monthly debt payments. Secured credit cards are the best tools in re-establishing credit after short sale and each secured credit card can boost a consumer’s credit scores by 30 or more points and expedite the credit re-establishing process. Never be late on any monthly debt payments after short sale. Most mortgage lenders will disqualify mortgage loan borrowers who had late payments after short sale, bankruptcy, and foreclosure. One 30 day late payment after short sale can disqualify a mortgage loan borrower from qualifying for a mortgage loan for at least seven years. A short sale will be on a consumer’s credit report for 7 years.

Condotel Financing

Difficulty In Condotel Financing?

A condotel condominium unit is a condominium unit within a hotel complex or a condominium project that has a rental desk or rental office in the lobby of the complex. Condotel units were extremely popular back in the 2000’s where many banks and mortgage companies were eager to finance condotel units. After the 2008 Real Estate and Mortgage Meltdown, condotel financing came to an abrupt halt. Almost all banks and condotel financing lenders stopped lending on condotel units. Condotel unit owners who owned condotels and wanted to sell their condotel units had the most difficult time in selling their units because the condotel buyers could not get financing. Condotel buyers were limited to cash buyers only due to lack of condotel financing. Many folks who wanted to purchase condotel units as second homes could not think of purchasing a condotel unit because they could not come up with cash funds. Due to the lack of available financing for condotels, condotel unit prices started tumbling nationwide. Many condotel unit owners could who purchased their condotel units in the mid 2000’s could not sell their condotel units and could not get them refinanced even with their current condotel mortgage lenders.  No matter how good of a banking relationship the condotel unit owner had with their condotel mortgage lenders, their mortgage lenders would not refinance their condotel loan that they were already servicing.

Condotel Financing Now Available

Condotel unit owners are now in luck. Condotel Financing is back. Condotel Financing are 30 year portfolio adjustable rate mortgage loans. 3/1 ARM, 5/1 ARM, and 7/1 ARM mortgage loan programs are now available. The index is based on the one year treasuries ( Cost Maturity Treasury CMT ) and the margin is set at 3.0%. The condotel complex needs to qualify as well as the condotel mortgage loan applicant.

Condotel Unit Requirements

For a condotel unit to qualify for condotel financing, the condotel unit needs to be at least 500 square feet, have at least one bedroom, and have a full kitchen. The condotel complex needs sufficient reserves and the condo complex cannot have any major litigation going on or have any major building violation issues. Not more than 10% of the condotel units can be in foreclosure.

Condotel Financing Requirements

To qualify for condotel financing, the condotel mortgage loan applicant needs at least a 680 FICO credit score, have one year reserves for the borrowers primary residence as well as the proposed condotel principal, interest, taxes, and insurance, cannot exceed 40% debt to income ratios, and require a 25% down payment. The 25% down payment on a condotel purchase loan is for first and second home condotel units only. For condotel unit buyers who have two properties and the proposed condotel purchase is the third property they are purchasing, then the condotel purchase is considered a investment condotel purchase and a 40% down payment is required. If you have any questions about Condotel Financing, contact Gustan Cho at Gustan Cho Associates at 262-716-8151 or email Gustan Cho Associates . Gustan Cho and his associates are available 7 days a week, evenings, as well as holidays to answer all of your questions.

2 To 4 Unit Properties

Purchasing 2 To 4 Unit Properties

First time home buyers or home buyers who eventually want to become real estate investors can now purchase 2 to 4 unit properties as an owner occupied residence with a FHA Loan with 3.5% down payment. 2 to 4 unit properties can be great investments for home buyers intending on occupying one of the units and renting the other units to offset the monthly housing expenses. FHA does require that mortgage loan borrowers of 2 to 4 unit properties occupy one of the units for at least one year. After occupying one of the units for at least one year, the 2 to 4 unit property owner can then qualify for another owner occupied home and rent out the unit they are exiting.

FHA Loans And 2 To 4 Unit Properties

To qualify for 2 to 4 unit properties with a FHA Loan, the mortgage loan borrower needs at least a 580 FICO credit score. There is a 3.5% down payment requirement for mortgage loan borrowers with at least a 580 FICO credit score. Borrowers with credit scores under 580 FICO credit scores, a 10% down payment is required. Mortgage rates on 2 to 4 unit properties are higher than mortgage rates of single family homes because mortgage lenders view multi unit buildings as higher risk. With higher risk means higher mortgage rates. To get the best mortgage rates on 2 to 4 unit properties, one should have credit scores of at least 640 FICO. Mortgage lenders will require three months of reserves for three and four unit properties. Reserves are one month of principal, interest, taxes, and insurance or PITI. Many mortgage lenders require two years landlord experience from the mortgage loan borrower to be able to count potential rental income as part of their mortgage lender overlay. If a mortgage lender requests two years landlord experience in order for them to count potential rental income, the seek another mortgage lender where they have no mortgage lender overlays .

Using Potential Rental Income To Qualify

FHA allows up to 85% of the potential market rent income to qualify for the mortgage loan borrower’s income calculations. However, many FHA mortgage lenders have mortgage lender overlays where if the mortgage loan borrower does not have two years landlord experience, then the potential rental income cannot be used to qualify. If you are told that you do not qualify due to mortgage lender overlays because you do not have two years landlord experience, contact Gustan Cho Associates at 262-716-8151 or email Gustan Cho at GustanCho@Outlook.com.

Can I Qualify For 2 To 4 Unit Properties With Conventional Loans?

You can qualify for 2 to 4 unit properties with conventional loans, however, owner occupied 2 to 4 unit properties require 15% down payment with conventional loans. You can also use potential rental income but the potential rental income you can use is 75% of the potential market rent that is stated on the home appraisal.

Second Home Financing

Second Home Financing Requirements

There are rules and regulations with second home financing. First, the home needs to be classified as a second home. For the home to be classified as a second home, there needs to be a distance between the first primary home and the proposed second home location.  The distance needs to be at least 60 miles from the primary home of the mortgage loan borrower or the property needs to be located in a different state. For example, if the primary mortgage loan borrower’s first home is in Illinois and the second home purchase is in Florida, there would be no question that the second home purchase is legitimate. However, if the borrower’s first home was in Naperville, Illinois and the second home purchase was in Downers Grove, Illinois, which is less than a 10 mile distance, then the Downers Grove second home purchase will not qualify for second home financing due to the short distance. Second Home Financing needs to make sense otherwise it will not qualify for second home financing and the only loan program the second home buyer will qualify for would be investment home financing.

Second Home Financing Versus Investment Home Financing

Second home financing and investment home financing can only be done with conventional loans or portfolio loans. Other loan programs such as FHA Loans, VA Loans, and USDA Loans are only for owner occupant primary homes only. The reason why second home financing is much more favorable than investment home financing is because with second home loans, a 10% down payment is required and mortgage rates are comparable to owner occupied primary home mortgage rates. Investment home financing require 20% down payment and mortgage rates are typically 0.50% higher than second home financing.

Special Circumstances To Be Classified As Second Home

There are special circumstances where mortgage lenders will waive the distance between the primary home and second home requirements if the deal makes sense. If the primary home is a single family home and the second home buyer wants to purchase a second home that is nearby, which is 60 miles or less than the primary home, they can do so and qualify for second home financing as long as the second home purchase is a waterfront property and/or in a resort area. For example, if the second home buyer has a home in the suburbs of Chicago and it is only 30 to 40 miles away from downtown Chicago and want to purchase a condominium in Chicago so they can enjoy the nightlife on the weekends, that is doable and these home buyers will most definitely qualify for second home financing even though the distance is less than 60 miles. Same scenario with a homeowner who has a primary owner occupant home in Tampa, Florida, however want to purchase a waterfront condominium in Clearwater, Florida which is only 25 miles away from where they live, they will qualify for second home financing. If a homeowner lives in Tampa, Florida and owns a single family home that is 2,000 square feet and wants to purchase another single family home that is 2,000 square feet in Clearwater, Florida, that would not qualify for second home financing. On this case scenario, they would only qualify for an investment home financing and the home buyer will need to put a 20% down payment and get mortgage rates for investment homes and not second home mortgage rates.

Buying Home From Builder

Benefits Of Buying Home From Builder

There are benefits of buying home from builder than buying home that has been built. One of the greatest benefits of buying home from builder is that the home is brand new. Nobody has lived in it and you will be the first homeowner to occupy the home. Everything from the flooring, walls, fixtures, windows, appliances, mechanical systems, and millwork is brand new. The new house smell is like the new car smell. Everything from the interior of the home to the exterior of the home is brand new.

Customizing New Home

Another great benefit of buying home from builder is that you can choose the color of carpeting, style of floors, layout, appliances, and other features to your liking and taste. There are stock features that come with the home, however, the new home buyer can select basics such as colors. Be careful when it comes to builder upgrades. Many salespeople who work for a home builder receive hefty commissions by doing a bait and switch where they try to sell you upgrades. For example, instead of a standard bathtub, they might try to upgrade your to a jacuzzi tub with all the bells and whistles. The issue is that most home builders will charge an arm and a leg for upgrades. A jacuzzi tub may only cost $500 but a home builder may charge you a $3,000 premium for the upgrade from a standard bathtub to a jacuzzi tub. Most home buyers are so excited about the thought of buying a brand new home that they get suckered in to upgrading it. Most salespeople will not even mention how much the upgrade costs and will try to sell you in $30,000 in upgrades and tell you that the monthly payments will only be an extra $100 more per month. New home buyers need to think twice about upgrades. It is wise to price out the upgrades and just purchase the home stock and upgrade it yourself after you close on your home.

Negatives In Buying Home From Builder

As with all benefits, there are always negatives that comes with positives. One of the negatives in buying home from builder is that most builders build the homes on raw undeveloped land. Landscaping will be an issue. When real estate developers plant trees and other landscaping, it may take many years for trees to mature. With older homes, the landscape is set and you can see many 40 plus ft. trees. Other negatives in buying home from builder is that most new construction homes are on smaller lots because the premium of land. You can easily find homes that sit on half plus acres with older homes, however, most newer homes sit on a quarter acre or less. Neighborhoods with newer developed areas are less homely than developed areas, especially if you are a homeowner that moves in the earlier stages of the home developers development stage.

Be Careful When New Home Builder Forces Their Preferred Lenders

New home buyers need to be extra cautious when being approached by new home builders to use their preferred mortgage lenders. Anti-Steering laws are implemented by the Consumer Financial Protection Bureau, CFPB, and any entity, whether they are real estate developers and/or real estate agents, that steer a home buyer to a specific mortgage lender is totally illegal, immoral, and a total violation of mortgage regulations and can be fined or can have their businesses shut down or can even get jail time. Stay away from home builders that will give you an incentive if and only if you use their preferred lender and the incentive does not apply if you choose your own mortgage lender. This practice is so illegal and a home builder can be shut down and can get a huge penalty by the CFPB. What this home builder is doing is steering you to a so called preferred mortgage lender because they have worked out a kickback scheme with the mortgage lender. This practice is so illegal and not fair to the new home buyer. Many home buyers, especially first time home buyers, will fall into this trick where they will just go with the home builder’s preferred lender because of a $5,000 incentive and shopping for a mortgage with another mortgage lender will be off the table.

What Is Debt To Income Ratio?

Debt To Income Ratio

Debt To Income Ratio is the sum of the minimum month debt payments a loan applicant has divided by the loan applicant’s monthly gross income. Mortgage lenders consider debt to income ratios one of the most important factors when qualifying for a mortgage loan. There are different debt to income ratio requirement depending on the mortgage loan program. For example, the maximum debt to income ratio permitted for FHA Loans is 56.9% if the mortgage loan applicant credit scores of at least 620 FICO or higher. If the mortgage loan borrower has credit scores of under 620 FICO credit scores, then the maximum debt to income ratios allowed is 43% debt to income ratio. For conventional loans, the maximum debt to income ratios allowed is 45% DTI. For jumbo loans, the maximum debt to income ratios allowed is normally 40% DTI.

What Is Front End Debt To Income Ratio?

The front end debt to income ratio is the monthly principal, interest, taxes, and insurance payments divided by the mortgage loan borrower’s gross monthly income. The front end debt to income ratios is also called the housing ratio because mortgage lenders consider the housing ratio or proposed housing ratios very important to see whether or not the mortgage loan borrower can afford the new proposed mortgage payment. FHA Loans has a front end debt to income ratio cap of 46.9% DTI for FHA mortgage loan borrowers with credit scores of 620 FICO or higher. For FHA mortgage loan borrowers with credit scores of under 620 FICO credit scores, the front end debt to income ratios gets reduced to 31% DTI.

What Is The Back End Debt To Income Ratio?

The back end debt to income ratio is the front end debt to income ratio plus all other minimum monthly debt obligations such as minimum credit card payments, auto loan payments, student loans, installment loans, and any other monthly debts such as child support payments, alimony payments, payment agreements divided by the mortgage loan borrower’s gross monthly income.

Solution To High Debt To Income Ratio Borrowers

Mortgage loan borrowers with high debt to income ratios often need to go with FHA Loans. FHA Loans are much more lenient with high debt to income ratios than conventional loans. Maximum debt to income ratios for conventional loan programs is capped at 45% where FHA Loans have debt to income ratio caps at 56.9%. FHA Loans also allow for non-occupant co-borrowers for FHA mortgage loan borrowers with high debt to income ratios. More than one non-occupant co-borrowers are permitted with FHA Loans. With conventional loans, Fannie Mae does not allow non-occupant co-borrowers, however, Freddie Mac does allow non-occupant co-borrowers. Again, both Fannie Mae and Freddie Mac have debt to income ratio caps of 45% DTI.

Hard Money Capital Group

Welcome To Hard Money Capital Group

Hard Money Capital Group is a hard money and private money lender that caters to real estate investors, real estate developers, and property flippers who need fast temporary financing. Hard Money Capital Group, www.hardmoneycapitalgroup.com , has no loan minimum and can fund loans as little as $20,000 and close it in as fast as one week. Most hard money lenders want a minimum of a $100,000 loan minimum and most hard money lenders may take as long as 30 to 90 days to process a hard money loan. Hard Money Capital Group‘s management staff consist of professional real estate investors, mortgage loan professionals, and real estate professionals so they understand the importance of fast financing and understand that many real estate investors went through bad credit due to the 2008 Real Estate and Mortgage Meltdown.

Does Hard Money Capital Group Have Credit Score Requirements?

Hard Money Capital Group does not have any credit score requirements. Hard Money Capital Group is an asset based mortgage lender and want the hard money borrower to have skin in the game. Minimum equity and/or down payment requirements to qualify for a hard money loan with Hard Money Capital Group is 35%. 100% financing is available if the hard money borrower can cross collateralize other properties. Hard money borrowers with bad credit or lower credit scores can qualify for hard money loans with Hard Money Capital Group. While the hard money loan borrower utilizes the hard money loan, Hard Money Capital Group can help the hard money loan borrower fix and improve their credit through its sister company, Credit Fix Advisors , and help them with an exit strategy with a traditional mortgage lender, Gustan Cho Associates . Gustan Cho Associates are commercial and residential mortgage professionals whose specialty are no mortgage lender overlays . Gustan Cho Associates are creative mortgage lenders, portfolio lenders, and have access to specialty mortgage lending programs such as Doctors Funding Group . Doctors Funding Group offers unsecured financing to doctors, dentists, veterinarians, chiropractors, pharmacists, nurses, and other licensed members of the healthcare community for as much as $500,000. Hard Money Capital Group is different than any other hard money lender because every hard money client is a lifelong borrower and they offer full service not just funding the hard money loan, but also assisting the hard money loan borrower with credit repair, and helping them with an exit strategy.

Fix Rehab Flip Loans

Fix Rehab Flip Loans are one of the most popular hard money loan programs. Most traditional mortgage lenders do not want to originate and fund loans under $100,000. However, we at HMCG can fund hard money loans as small as $20,000, the hard money loan borrower can rehab the property and flip it at a handsome profit. For hard money borrowers who want to keep the investment property and keep it as a rental after the rehab, they can get a hard money loan with HMCG , fix the property and get end financing with Gustan Cho Associates. During the time of the rehab, HMCG will help the hard money loan borrower maximize their credit scores and do credit repair so they can get the best mortgage rates and terms on their end financing.

If you are interested in a private money or hard money loan that can close in a week, please contact HMCG at 800-900-8569. One Solution Real Estate, www.onesolutionrealestate.com, full endorses Hard Money Capital Group.