What is a Private Money Loan?
A private money loan is simply a short-term loan secured by real estate. They are funded by Private Investors as opposed to conventional lenders such as banks or credit unions. The terms are usually around 12 months, but the loan term can be extended to longer terms of 2-5 years. The loan requires monthly payments of only interest or interest and some principal with a balloon payment at the end of the term. Jordan Ribera is a leading provider of private money loans in Fresno, Clovis, Madera, Visalia, and Bakersfield, as well as the whole state of California. For more information on private money loans and how to qualify, contact Jordan Ribera today at 559-824-3701.
How to Qualify for a Private Money Loan
Qualifying for a Private Money loan is a simple process. One of the many benefits of obtaining a Private Money Loan is how quickly the deal can be funded from the time the loan package is put together. Here is what is needed to qualify:
1. Application is completed by the borrower/borrowers
2. Required documents in the application checklist are gathered and submitted to the lender
3. A clear exit strategy is presented to make sure there is a game plan set up to get the borrower out of the Private Money Loan
4. A full loan package is put together by the lender and the package is then reviewed by the loan committee.
5. An appraisal may or may not have to be ordered depending on internal valuation’s and loan circumstances
6. Final loan approval from the loan committee is issued, loan documents are drawn, & the wire goes out!
Advantages of Private Money Loans
One of the many advantages of Private Money Loans is how quickly they can be funded. The long drawn out qualifying process that can’t be avoided when assuming bank financing is thrown out the window. With banks getting more conservative and tightening up on their lending guidelines, Private Money Loans are available to fill that gap and get you the financing you need. The amount the private money lenders are able to lend to the borrower is primarily based on the value of the subject property. The property may be one the borrower already owns and wishes to use as collateral or it may be the property the borrower is acquiring.
Private money lenders are primarily concerned with the property’s value rather than the borrower’s credit (although credit is still of some importance to the lender). Borrowers who cannot get conventional financing due to recent foreclosure or short sale can still obtain a private money loan if they have sufficient equity in the property that is being used as collateral.
Get a Private Money Loan today
Jordan Ribera is a leading provider of private money loans in Fresno, Clovis, Madera, and Bakersfield, as well as the whole state of California. For more information on private money loans and how to qualify, contact Jordan Ribera today at 559-824-3701.