Category Archives: Arizona Stated Income Mortgage

Key Differences between Commercial Loans and Residential Loans

Knowing the differences between commercial loans and residential loans will help you to understand the lengthy process when applying for a commercial loan.

Most consumers think that the process to apply for a residential loan is fairly in-depth and thorough. But if they were ever to apply for a commercial loan they would begin to look more favorably on the residential loan application and approval process. Because of the larger sum of money involved and the greater risk and volatility in the commercial real estate market, commercial loans and the application process can be very intense.

When a consumer applies for a mortgage, the lenders first concern is their income and its stability as well as their debt load. Consumer’s debt should be no more than 45% of their income. But commercial lenders are more interested in the ability of the property to generate income to pay the loan. This is called a Debt Coverage Ratio and lenders prefer to see the ratio at 1:1.25 at the least. This means that the income to cover the loan payments is relatively secure.

A down payment on a home is somewhat negotiable and in some cases is very, very small. But due to the increased risk associated with commercial loans, these down payments are normally 20%. This gives the lender the added security of knowing that the property is valued at 20% more than the initial loan amount. Even in the event that the borrower defaults early in the loan, chances are good that the property is still valued at the full payoff on the loan.

Time Is Critical for Commercial Loans

A normal residential mortgage loan can range from 15 years to 30 and some even stretch as far as 40 years. But a commercial mortgage loan rarely exceeds 10 years. This is because lenders want to decrease the risk of the loan by getting their money back faster. In addition, consumers can pay a mortgage loan off early and save some of the interest that they would have paid over the term of the loan. This is not the case for a commercial mortgage. And in fact, there can be penalties which must be paid called prepayment penalties. In more cases the penalty decreases the further into the loan you progress. But the lender wants to be sure that they make their desired profit, or earning, on each commercial loan they write.

Not Really Even Similar

A consumer mortgage and a commercial property loan are only similar in the fact that it is a loan to purchase property. The dollar amount of most commercial loans is substantially larger than the average home loan. In addition, commercial real estate values are very volatile and can change drastically and very quickly. This is an added risk for the lender. Due to these increased risks, lenders are much more particular about the loan applications which they approve and the terms for which they will offer the loan. Having a good understanding of the lenders approval criteria can save a borrower a great deal of time in completing lengthy commercial loan applications if they don’t meet the lenders criteria.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC  Private Hard Money Lender
Arizona Tel:  (623) 582-4444
Texas Tel:      (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
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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 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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5 Things to Consider if You Need a Self Employment Home Loan

In case you are self-employed, you might have issue qualifying for a
conventional mortgage. Nonetheless, don’t be disheartened, there are a lot of
self-employment home loan choices that
can assist you discover the loan you want to purchase the house you deserve.

There are numerous perks to being self-employed. You get to be your individual
boss, resolve your individual hours, create your individual costume code, and in lots of instances,
reply solely to your self. There are additionally a host of official tax write offs
that may make proudly owning your individual enterprise extra profitable than punching a time
clock. Every part from dwelling workplace area to computer systems to workplace provides and
generally even meals are tax deductible. This may significantly decrease your tax burden
and show you how to maintain extra of your individual hard earned money.

 

 

 

Brandon-Abney-Arizona-Home-Loan-FHA-Specialists-150x150.jpgNonetheless, whereas many of those tax deductions may be big advantages come
tax time, they will additionally make it troublesome to qualify for a dwelling mortgage. For a lot of enterprise homeowners, there taxable revenue and what they really make may be very completely different, with the quantity that’s taxable being comparatively low. In some
instances, enterprise deductions may very well make it appear like your online business is in
the crimson when in actuality you’re making a comfy revenue. Once you go to purchase a dwelling or funding property, this may turn into a massive legal responsibility. Many
conventional banks will have a look at your tax returns and offer you a loan that’s
considerably smaller than what you want or can afford. Or, even worse, it’s possible you’ll
be denied a loan altogether primarily based in your tax returns.
 For a lot of enterprise homeowners, this may be a discouraging expertise. You
spent years of your life constructing your online business and your private model, solely
to be advised that it will probably really be a legal responsibility. Don’t lose hope. Whereas many
conventional banks might have their fingers tied, there are a number of
self employment home loan choices and
packages that may show you how to get the house loan you want.

 

 

 yes we can.jpgIf you end up within the scenario of needing a non-conventional loan
due to your self employment standing, you want to get organized and discover the proper firm to show you how to safe your loan. Listed below are 5 issues to think about
if you end up available in the market for a self employment dwelling loan.
  1. Discover a mortgage dealer and private lending
    firm. Banks are hard to cope with. A mortgage dealer will be just right for you to
    discover the loan that you just deserve. A mortgage dealer can assist you even when a financial institution
    has already mentioned no as a result of he has entry to a number of lending establishments and
    loan varieties whereas a financial institution can solely give out its personal loans. A private lending
    firm can be helpful as a result of they can provide private investments that banks
    are usually not in a position to supply.
  2. Get your monetary geese in a row. Be sure you
    maintain meticulous information and stock to give a clear image of what your money
    movement appears like.
  3. Consider separating your online business and private
    funds. This fashion even if your online business is within the crimson due to bills, your
    private revenue is undamaged. Pay your self such as you would another worker. This
    might imply that you find yourself paying extra in social safety taxes or private
    revenue taxes, however might find yourself being value it.
  4. Look into various loan varieties. Arduous money
    loans, adjustable charge mortgages, FHA loans, and private capital loans can all
    be good choices for self employment dwelling
    loan
    s.
  5. Be persistent. You might hear no a few instances
    earlier than you hear sure. Preserve making an attempt. The suitable loan is on the market.

 

If you end up prepared to make the leap and
be taught the advantages of a
self employmenthome loan, name us at Stage four Funding to get the method began.

 

Our educated and pleasant employees can assist you each step of the
method. You will likely be glad you referred to as. We glance ahead to the day the title firm
fingers you your keys to your new dwelling.

 

Dennis Dahlberg

Dealer/RI/CEO/MLO

Stage four Funding LLC
Arizona Tel:  (623) 582-4444 

Arizona Tel:     (512) 516-1177 

www.setabay.com


NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112

Phoenix AZ 85027


 
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Apply for a Stated Income Mortgage and Stop Renting Now!

You have been renting the identical unit in a good downtown space. Hire isn’t low-cost however the space is good and it’s near work. Your folks and household hold asking you when you’ll get a home. Although you by no means thought-about shopping for a home, you suppose it might be too tough to use for a mortgage. You understand banks would not approve of your credit score historical past or irregular earnings scenario. Though you make a comfy residing, sufficient to afford an costly high-rise house, the financial institution desires to really feel assured sufficient which you can tackle a mortgage. What are you able to do to qualify for a mortgage then? As a substitute of coping with banking establishments that most definitely gained’t approve of your software for a mortgage, contemplate making use of for a Texas stated income mortgage.

Moreover making use of for a Texas acknowledged earnings mortgage, there are professionals and cons of shopping for home in comparison with renting. On this article, we focus on the pitfalls of renting vs. shopping for a house. We will even take a have a look at how simple it’s to use for a stated earnings mortgage that may get you in the home you need.

Renting vs. shopping for a house

Renting is seen as much less of a headache with regards to house obligations. If one thing in your house breaks, you merely name upon property upkeep. You don’t have to do these fixer higher initiatives by yourself. Additionally when you plan on shifting quickly or unsure in case your residence can be everlasting, than renting is a excellent choice. When you may have a home, it’s a a lot more durable and tedious course of to maneuver when the circumstances name for it (for occasion, relocating for a job).
Renting an house works for some, nevertheless there are some drawbacks. Renting can get irritating. There are numerous issues with renting that folks don’t usually take into consideration or refuse to acknowledge.
A home usually is bigger actual property and permits for extra room, then a median rental unit. As an illustration, a home is extra handy when you may have a household of 4.
Renting can also be usually seen as throwing your money away or paying another person to maintain a roof over your head. Consequently by shopping for your home, you aren’t throwing money away. Each month-to-month mortgage cost you make ultimately means the property can be yours. As an proprietor, you’re then free to do no matter you need with the property – proceed to reside in it, promote it or hire it out.

Shopping for a house is a lot simpler with a acknowledged earnings mortgage

There are normally a number of hoops to leap by earlier than you get to settle into your new house. After you submit your down cost, you’re prepared to use for a mortgage. With the intention to get the very best deal doable with regards to funds, it’s best to talk to a certified loan skilled. That is very true when making use of for various sorts of mortgages, like a Texas acknowledged earnings mortgage. Nonetheless making use of for a acknowledged earnings mortgage, the method is usually simpler than a commonplace house loan.
Relating to making use of for a acknowledged earnings mortgage, you merely state the earnings you make. If in case you have a lot of money upfront for a down cost, your odds of being accredited for a acknowledged earnings loan are even higher. The perfect recommendation is to talk to a certified mortgage loan skilled. These specialists will show you how to qualify for a mortgage and ultimately the home you need to personal.

Dennis Dahlberg
Dealer/RI/CEO/MLO

Degree four Funding LLC
Tel:  (512)-516-1177 Austin Texas | Fax: (888) 279-6917
www.level4funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
111 Congress Ave Suite 400

Austin TX 7870127



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How to Finance a Home with a Stated Income Mortgage

When folks consider said revenue mortgages, they’re usually confused. An Texas stated income mortgage is completely different in contrast to a conventional mortgage. Whereas a conventional house loan is lent by means of a native financial institution, a said revenue mortgage is lent by means of a private lending firm. On this publish we are going to take a have a look at whether or not a said revenue mortgage is best for you and your scenario. Moreover, we are going to focus on how a said revenue mortgage works and the place to discover one.

Are you a candidate for a said revenue mortgage?

Take from this case: You discovered a house you really need. You will have sufficient money saved for a down cost, however you want to discover an establishment that can lend you the extra quantity of the home. Who do you lend from and extra importantly, would you qualify as a borrower?
Nicely, it will depend on your employment standing, credit score historical past and different previous monetary choices. In a typical qualification course of, the borrower should reveal his/her revenue and present employment. Nevertheless there could also be conditions when you could not want to use your employment standing to qualify for a mortgage loan. It’s possible you’ll be self-employed, like as an example, a contractor or insurance coverage agent. Due to the ups and downs of revenue, it’s hard for a financial institution to label you as a “low-risk” borrower. At this level it is best to have a look at one other kind of mortgage, often known as a said revenue mortgage.
A financial institution doesn’t lend said revenue mortgages. As a substitute they lend commonplace or conventional mortgages, which signifies that so as to be authorized you need to retain their necessities. A banking establishment’s necessities for a house loan fluctuate barely between banks, however for probably the most half necessities are the identical. For a typical loan it’s preferrred to have a commonplace paycheck from an employer, a long-term credit score historical past and a excessive credit score rating. If you don’t possess the necessities essential to get hold of a loan from the financial institution, there are different methods by which to get a mortgage.

How does a said revenue mortgage work?

One of the best ways to learn how a stated income mortgage works is to communicate to private lenders. There are lots of various kinds of private lending. Some private lenders are people whereas others are somewhat massive firms. There may be actually no distinction in whether or not a private lending firm is massive or small, nevertheless it is vital that you’re comfy with your lender. Additionally when looking for a private lender, pay attention to the recommendation you might be given and whether or not they specialize within the space of house loans. Higher but, be certain the corporate or particular person you might be dealing with specializes particularly in said revenue mortgages.

The place do I discover a said revenue mortgage?

An organization that focuses on said revenue mortgages is Level4Funding. Not solely do the folks at Level4Funding educated within the space of said revenue mortgages, they may assist you to purchase the home you really need. Don’t delay. Name us immediately at 512-516-1177!

Dennis Dahlberg
Dealer/RI/CEO/MLO

Degree four Funding LLC
Tel:  (512)-516-1177 Austin Texas | Fax: (888) 279-6917

www.Level4Funding.com
NMLS 1057378 | AZMB 0923961 | MLO 1057378
111 Congress Ave Suite 400
Austin TX 78701



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