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HARD MONEY - PRIVATE EQUITY
Five Stars Mortgage provides our client's with access to every lending source available in the market today. One of the valuable resources is private equity funds sometimes called hard money. Hard Money lenders provide a valuable niche in today's market, filling the void left in the wake of the sub-prime mortgage crisis.
Hard Money or Private Equity is far different from other more traditional financing sources. Hard money lenders typically lend solely based on the equity in the home. Due to the extreme demand on hard money lenders and their ability to pick and chose which loans they wish to provide... most hard money lenders prefer refinance loans to purchase loans. Five Stars Mortgage does still have access to prive equity funds for hard money purchase loans!
There are many advantages to the hard money loans and also some drawbacks which homeowners should be educated about.
Hard Money Benefits
- ability to close loans in 2-3 days
- No Documentation loans are typically used
- Credit is only checked for judgements or liens that may need to be paid in order to avoid the private equity hard money lender from any title problems down the road
- If you have equity... you have a loan
Hard Money Caution
- Hard money typically has much higher interest rates (10%-15%) depending on the risk level of your particular loan.
- Private lenders charge several points at closing and normally carry at least a one year prepay (able to buyout of prepay at closing)
Five Stars Mortgage has partnered with only the most ethical and professional private money sources in the market today. As with any other loan program with Five Stars Mortgage there are no surprises. All rates and fees will be discussed in advance for your hard money loan and the agreed upon terms is what we deliver. There are never any last minutes surprises as you may find prevalent in this area of the market.
We work with many investors that use hard money loans as a means of temporary financing while the either work to sell a property. In some cases the investors or homeowners are using hard money to rehab a property to increase the value. In other cases our clients cash out in order to fix troubled credit so that they can refinance into FHA or other conventional loan programs in a short period of time. Yet other investors use hard money as a means to acquire property with little money out of pocket and for speed of the transactions.
There are countless uses for private equity hard money loans and we understand all of them. Five Stars Mortgage is the premier source for your hard money and private lending needs. Contact Us now for more information!
Specialized Hard Money Programs
INVESTOR LOANS:
We have a new program for investors looking to purchase REO's or even for FHA fallout loans that cannot be financed conventionally. Conventional lenders have limited investors to only having four properties financed at one time. This means if you own a primary residence and three investment properties, a conventional lender will not be able to offer you a mortgage on the fourth investment property under any circumstances. By using our hard money investor loan program you will be able to purchase as many investment properties as you can reasonably sustain. The requirements of our investor hard money REO purchase program are:
- At least 620 middle Fico Score (Lower scores may be considered with compensating factors)
- Income Documentation Required (bank statements and other non traditional forms of income verification can be utilized)
- 30% down payment required
These loans are underwritten in a "makes sense" fashion. If you can show an ability to repay the loan then the chances are we can get you approved under this investor purchase program. This will allow you to maximize your cash and purchase more bank REO's or other undervalued properties at a great profit.
One of the great featured about this loan program is that it is not an adjustable rate mortgage. It also has no prepayment penalty associated with it. Loan terms can be extended to 25 years.
TRUE NO DOC LOANS:
We still have access to true no documentation loans. These are made for refinances of low LTV and free and clear properties that homeowners need to unlock equity from. With this loan program you can get a 30 year fixed loan with no balloon payment!
The main factor considered when underwriting t his loan program is the property. We need pictures of the property and a basic loan application to get you loan terms the same day. Appraisals are NOT required. If you inherited a home, paid cash for a home last month and now need to get it back out,owned your home for 20-30 years and are in a difficult situation, or any other of thousand scenarios... we can help. These loans are true NO DOC loans and can fund in three days.
We are closing these loans every month. This is a great opportunity to clean up your credit, upgrade your home, or obtain working capital for higher yielding investments. If you think you may have a property with a low LTV refinance and want a quick NO DOC hard money loan please call us today or apply online now!