Numerous real estate investors go with private real estate financing to buy a new home or property, or update or refinance one they already have. Whereas traditional lending institutions such as banks require an extended, time consuming application process and are more than likely to hesitate to offer money to a self-employed borrower, private mortgage loans in Iowa close fast and are easy qualifying.

Thus, while you might don't have very good credit, having a real estate opportunity showing good potential, a significant downpayment, previous experience, and a clear-cut exit strategy are a great deal more important in terms of qualifying for private money for a real estate loan. In addition, the fast closing Iowa private real estate mortgages supply you with funding right away, helping you close a deal within a few short weeks.

Most real estate professionals use Iowa private mortgage lenders when:

1. A remodeling job or renovation will make it possible to offer the house for a higher price or charge significantly more rent.

   Real example: one of our customers operated a 2-family rental. He already had a considerable amount of equity available in the house and the rent checks brought in a steady cash flow. A few choice home renovations would undoubtedly help him bump up the cost of rent, but because of a below average credit score of 520, it was extremely probable that a bank would turn down the mortgage application. So he turned to Island View Private Loan Fund to do a cash-out refinance and acquired financing at 65% LTV.

2. They want to combine all their outstanding debts into a single loan.

   Countless debts with a range of interest rates are very overwhelming and hard to manage. This is the reason numerous people choose to utilize the equity available in their property to merge all their debts into a single private mortgage which has a single monthly payment.

3. They would like to take advantage of the equity in their existing home to do a different real estate project.

   By way of example, one of our previous customers in Hawaii had a house valued at over a million dollars. When he was unable to procure a buyer for the property, he agreed to a lease-option-to-buy arrangement with an interested party. The lease income helped him meet his current mortgage expenses, property taxes and homeowner's insurance. He also was given a $200,000 non-refundable advance payment for the 3-year lease contract. Using these sureties to take care of the property's monthly payments on an ongoing basis, he contacted IVPLF to get a 70% LTV private mortgage loan for his upcoming real estate investment. The financing helped him put enough money towards a new investment as well as pay off his primary mortgage.

4. The balloon payment for a prior loan is owed soon and they cannot afford it.

   A person who invests in real estate and currently has an existing private mortgage loan and isn't able to pay for the balloon payment thanks to a change in circumstances can fill out an application for refinancing from an alternative lender. A cash-out refinance will help the borrower complete the balloon payment and evade fines.

Intending to discuss loan programs with a private mortgage lender in Iowa? Submit the contact form on this page or call us to discuss your property.