Private real estate financing involves obtaining a short-term loan from a privately owned business or individual person with the intention to buy, carry out upgrades on or refinance a home or property. Delaware private mortgage loans have many advantages — they are fast closing, easy qualifying and are also available to self-employed individuals.

So in case you don't have great credit, having a promising opportunity, a significant downpayment, prior real estate experience, and a clear exit strategy are more relevant when being approved for private money for a real estate loan. And having fast closings of just fourteen days, private real estate mortgages in Delaware may very well be the ideal choice for serious real estate investors.

Usually, clients contact a private mortgage lender in Delaware when:

1. They wish to remodel or repair the home and property to be able to offer it at an increased price point or to fetch higher monthly rental fees.

   By way of example, there was this client with a two-unit rental. He'd already built adequate equity in the building and the rent payments was a regular income source. He desired to do some improvements to the place to be able to maintain high rents, but a poor credit score of 520 meant that a bank would undoubtedly turn down his mortgage request. So the borrower got in contact with Island View Private Loan Fund (IVPLF) to execute a cash-out refinance that in turn provided him a loan for 65% of the property's appraised value.

2. They have multiple personal debts and need to consolidate them.

   Multiple outstanding debts with a variety of lending rates can be extremely overwhelming and challenging to keep track of. To make the situation more reasonable, some people consolidate their unsecured debts into an individual loan with one payment per month.

3. They wish to release the equity in one property and invest in another one.

   For instance, one of Island View's clients located in Hawaii had a place valued at over one million dollars. He wanted to sell the house but that never transpired and he finally had to be content with leasing the place to an interested party, with an option to buy at a later time. The rent amount was adequate to take care of his monthly mortgage payment, property taxes and cost of homeowner's insurance. The renter also put two hundred thousand dollars for a non-refundable advance payment when he signed the 3-year lease agreement. With these sureties covering the home's monthly payments on a recurring basis, he approached IVPLF to obtain a seventy percent loan-to-value private mortgage loan to help with his subsequent investment. Meaning that he could make the downpayment for the new property, and also pay down his present mortgage.

4. The balloon payment for an existing loan is owed soon and they are unable to handle it.

   If a borrower can't pay a balloon payment due to unforeseen factors, he can try and refinance the loan with a new lender. A cash-out refinance can help the borrower complete the balloon payment and escape fines.

Intending to discuss your mortgage alternatives with a private mortgage lender in Delaware? Enter your info into the form or get in touch with us via phone to discuss the project you have in mind.