Most borrowers are only familiar with traditional lending resources such as banks or other lending institutions. But there is another option which is to use are the numerous Arizona Private Money Lenders.
Traditional lenders are the banks and other lending institutions that everyone has been using since they opened their first savings account as a kid. These are businesses which make a profit by loaning money to borrowers for a fee, which can include interest, service fees, and even late fees. And as large businesses, they have a specific process for applications, approvals and the criteria needed to qualify for a loan. The reason for all of these processes is that the lender has determined them to select only the lowers risk borrowers. In short, it is a qualification process to ensure that the lending institution continues to make money. But these qualifications eliminate the opportunity to borrow for a large percentage of the population. This is why Arizona Private Money Lenders are becoming more popular.
Also known as Hard Money Lenders in Arizona, private lenders are non-traditional lenders, meaning not banks or lending institutions. This allows the lenders to set less stringent loan qualifications as well as tailoring the terms of the loan. These freedoms not only make the lending process less complex for the lender but they also offer many great benefits to the borrower.
Most borrowers who are not able to qualify for a traditional loan fail the application process because of a low credit score or no real credit history. A credit score below 650 will be required by many traditional lenders and will cause the borrower to pay a fairly high-interest rate. But Arizona Private Money Lenders are likely to fund loans for borrowers with credit scores as low as 550.
Less Red Tape
Private lenders eliminate a great deal of the stress that borrowers normally face during the loan application process. This is because private lenders are basing the loan on the value of the property being purchased and not the borrower’s credit score. Far less paperwork is required which is great for both the lender and the borrower. In addition, this lack of a long application process greatly reduces the length of time required to apply, be approved and get a loan funded.
Many Benefits, But At A Cost
Arizona Private Money Lenders are a great alternative for borrowers who have poor credit or no credit as well as borrowers who are in need of a fast application and approval process. What borrowers need to understand that is that private lenders are still in business to make money, and because it is a business, there will be interest and other fees for using the lender’s money. The interest rates are not regulated as they are with traditional lenders so rates can vary a great deal as can the other fees and terms associated with the loan. But the loan is still very legitimate and the loan agreement is legally binding. Though there are some differences, private loans are a good choice for someone who is not in a position to secure traditional funding.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.