Hard Money - Private Equity
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 resoruces 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 subprime 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 judgement 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 leats 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 prevelant 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 otehr 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!