Private real estate financing involves obtaining a short-term mortgage via a privately owned firm or individual person with the intention to buy, perform improvements on or refinance a home or property. Whereas standard lenders like banks require a prolonged, time consuming application process and are more than likely to hesitate to loan money to a self-employed customer, private mortgage loans in Virginia close fast and have minimal eligibility criteria.

This is good for real estate investors because even an individual with poor credit can opt for private money for a real estate loan so long as he has a deal that shows strong potential, he has sufficient money for a down payment, he has shown himself competent in past real estate ventures, and can show a preplanned exit strategy. Besides, if you need a fast closing, there are few options better than Virginia private real estate mortgages.

Normally, customers get in contact with a private mortgage lender in Virginia when:

1. A rehab or restoration can help to sell their property at a higher price or get more rent.

   E.g. one of our customers owned a twin-home / duplex. He had already built up considerable equity available in the asset and the rent was a routine revenue stream. A few choice home enhancements would undoubtedly help him bump up the cost of rent, but having a lower credit score of 520, it was highly probable that a bank would turn down the loan application. Shortly after he got in touch with Island View Private Loan Fund to get financing, we were happy to complete a cash-out refinance for 65% of the home's market value.

2. They need to consolidate their unpaid debts.

   Numerous outstanding debts with different lending rates are often too much to handle and hard to keep track of. On that basis, many individuals do a loan against a property's equity to merge all of their unsecured debts into one single loan.

3. They would like to utilize their home's existing equity for a different real estate deal.

   One of Island View's borrowers in Hawaii owned a property worth $1.2 million. While it was difficult for him to find a buyer for the property, he had found a person who was ready to lease it having the option to buy. The funds that stemmed from the lease contract took care of his monthly mortgage bill, home owner's insurance, and property taxes. The renter furthermore agreed to pay him 200k as an advance payment for a three year lease. With the help of these sureties to cover the house's foreseeable financial obligations, he came across a new real estate opportunity and got in touch with IVPLF for a private mortgage loan close to seventy percent of the home's estimated value. This let him pay an advance on the downpayment for the new property, and at the same time helped with his existing mortgage.

4. The balloon payment for a prior mortgage is owed soon and they can't pay it.

   If a borrower is unable to make a balloon payment as a result of unanticipated factors, he can make an effort to refinance the loan with another mortgage company. A refinance will help the borrower avoid missing the cut-off date for the balloon payment and steer clear of any penalty charges.

Planning to discuss loan options with a private mortgage lender in Virginia? Enter your info into the form or get in touch with us via phone to discuss your property or properties.