Purchase money loans can be the solution that you have been searching for when traditional mortgage loans are not the right answer. Private lending can help to put the cash in your pocket that you need to buy that property you have your eye on.
Purchase money loans come with the advantage of quick approvals and because they come from private lending groups the criteria for approval is different. This can be the solution you have been searching for.
How Do You Get Approved?
Traditional lenders want tons of proof and paperwork like tax returns, pay stubs, and credit reports to lend you the money that you need to purchase a property. Atlanta private lending options do not. The loan is based on the value of the property.
Purchase money loans are ideal for:
- Expanding your real estate portfolio
- Flipping real estate
- Investment properties
Purchase loans sometimes referred to as bridge loans, are an opportunity to have the money that you need quickly to purchase the property that you want. In some cases, the loan can be the “bridge” between purchasing the property and refinancing it down the road. It can also be the “bridge” when you want to purchase a property to rehab and flip.
The loan is based on the property value and not on your credit score. Real estate investors have been using these types of loans for years. You can take advantage of the same opportunity.
Is it Right For Me?
There are some caveats when you use this type of financing. For example, the life of the long is typically much shorter than the life of a traditional mortgage, but if you only need the loan for a few months because you plan on flipping the property, it can work to your advantage.
On a traditional mortgage instrument you may have to pay penalties and fees for satisfying the note before the 10,15 or 30-year term. With purchase loans, the mortgage becomes due usually in 12 months to 24 months at which point you either pay it off or refinance it through another source.
These types of loans are not usually for owner-occupied dwellings. In other words, this is not the way you would buy your own home. The idea behind this type of loan is that it is used for an investment property, retail property, commercial property, and even vacation property.
If you find yourself in a position where you have a real estate opportunity that you do not want to miss out on, consider how purchase loans can help, then call the leader in the Atlanta area to learn more about this option.