Tag Archives: property
Secured Personal Loans Yield Immediate Cash
When you need cash now to make purchases or pay debts, you might want to consider taking out an online secured personal loan. A secured personal loan is a loan that is secured with property that you own, and can easily obtained in amounts up to $100,000 or more.
Most secured personal loans are backed up by using your home as collateral. That is the reason why some lending institutions refer to these loans as homeowner loans. Collateral need not be in the form of your home, however; you can easily use other real property, such as your car, boat, RV, or other pieces of land or real estate to stand good for your secured personal loan.
Additionally, if other lenders have placed liens against your property to secure your mortgage, you can still use it for collateral.
Secured Personal Loans For All Borrowers
Secured personal loans are very popular among those who might have been turned down for an unsecured loan. You can use your secured personal loan for whatever needs you have, whether you are looking to buy a new automobile, finance home improvements, add an addition to your home such as a fourth bedroom, or perhaps even take a dream vacation.
There are many benefits of a secured personal loan over an unsecured personal loan. Secured personal loans typically carry lower monthly payments that are spread out over many years. Secured loans are also very attractive to buyers without perfect credit, even those with low FICO scores, which makes the secured loan available to nearly all types of borrowers, regardless of past history.
By getting your secured personal loan online, you are ensured of getting the lowest interest rate possible across the industry. Your interest rate is typically calculated by taking into account the amount of the loan, the term of the loan, and your credit history.
Protect Your Future
A good idea when taking out a secured personal loan is to purchase the optional disability and life insurance that most lending institutions offer on these loans. Your disability or life insurance policy for your new secured personal loan will be very beneficial to you if you were to lose your job or become unable to work due to illness, when your benefits would be activated that make payments on your behalf during the incident. Additionally, if you were to pass away, the policy would ensure that your survivors can keep your home.
Apply Securely Online
Applying for your secured personal loan online is simple, convenient, and hassle-free. Online lenders have set up websites that feature applications that are user-friendly, and allow you to submit your information electronically. Any documentation that is required to complete the processing of your loan can also be submitted by sending a scanned email copy of the required item or by faxing a copy. Items that might be required are recent paystubs, bank statements, and identification documents.
Once approved, you will receive an offer from the lender. You are not obligated to accept the offer. If you review and accept the offer from your lender, the proceeds from your new online secured personal loan can be deposited into your bank account almost immediately.
What are Hard Money Loans?
For the purpose of financing your investment properties there are two options- Hard Money & Soft Money.
Soft Money- is simply money that is borrowed from banks and other lending institutions. This is the normal loan process where the loan is underwritten by an underwriter. There are rules and guidelines that are made by the lenders or by the groups that buy the loans from the lenders. This would include all loan types and verities.
Hard Money- is money from investors to fund your investment property. Hard Money is normally sort term. Hard Money is normally used when the property needs some repairs and rehab. With Hard Money you can finance the expense for repairs as a part of your loan. If you are able to locate a home with good equity you will be able to do the entire purchase and rehab with no money out of your pocket.
The Rules- since the money is coming from private investors they can make their own rules, unlike soft money above where the rules can be more restrictive. For this reason you can obtain money and eventually additional money based upon your track record and performance with a particular Hard Money Lender.
After Repair Value (ARV) – This is what the property would be worth after your rehab is competed and this value is normally determined by appraisers that work with your hard money lender. Normally Hard Money lenders will loan 65 of the ARV. This is how it works
if you buy a home for $100,000 you can borrow $65,000, 65 of that amount or $130,000, now you have money to buy the house for $100,000 and pay for your rehab.
Escrows- This is money that is held by a 3rd party, normally a Title Company, for a specific purpose. In the case of Hard Money Lending they would escrow your repair money and in some instances they would escrow your first couple of payments. This is done to ensure that the work on the property is actually completed. When you first apply for your Hard Money Loan for a specific property you would prepare a work sheet of what needs to be done and the cost of that work. This would be used to set up your escrow account.
Draws- The way the money for repairs is disbursed is by using draws. The Hard Money Lender would physically inspect the property to ensure the work was actually done and disburse the money accordingly. The money is not released all at once, rather in gradual portions as the work is completed. Each portion is a draw.
When & Why- There is a time a place to use Hard Money Loans. Normally for Soft Money to be used the property needs to have a roof, windows, doors, floor coverings. If the property does need some work this is called deferred maintenance. This would be noted by the appraiser when the appraisal is done. Traditionally if this number is over $2,000 you would not be able to receive a Soft Money Loan. The other reason investors use Hard Money Loans is so they do not need to use any of their money or to personally fund their project. As you can see a good portion of the properties an investor buys would be financed with a Hard Money Loan. This is due to the fact that most foreclosed properties are not well kept. However, there are always exceptions to this.