Private mortgage lending can be a very lucrative investing tool for the average person to add to their portfolio. In BC private money lending on real estate is pretty basic. In general the average investment will go up to 75% LTV or Loan to Value. Higher LTV’s do happen up to 80% but for these examples we will use 75%.
Is having a good credit score essential for obtaining a home equity loan? Yes and no. You don’t need good credit to get a home equity loan. However, you will need good credit to get a lower-rate home equity loan — the very essence of a home equity loan is…home equity.
A bad credit home equity loan will however help you improve your credit score by paying down your outstanding debt to zero. It will also significantly improve your cash flow. Credit cards and other loans are usually amortized reflecting in a higher payment. Typically, home equity loan payments are interest only giving you a lower payment and better cash flow.
Home equity loans can be used for a variety of reasons even bad credit. When you have bad credit a home equity loan can allow you to payout or negotiate your debts which should improve your credit and improve your chances of qualifying back at a bank in as little as 12 months. Second mortgages are mostly used when consolidating your debts into a bad credit mortgage loan.
Second Mortgages are a fast and easy way to obtain money using a home equity loan to do things like: debt consolidation, home renovations, create fast business capital if your self employed, pay outstanding bills like taxes or liens. These are great for reducing payments, paying out debts or increasing cash flow but what else should you consider?
How to you stop the cycle of bad credit mortgages? When refinancing a mortgage or taking out home equity with bad credit you have very few options. I have many private mortgage lenders that are happy to offer financing at an increased rate of interest if you are suffering from bad credit.
Sure almost everyone has had a cheque bounce once in their life and you might think that it is not that big of a deal. Did you know that this can lead to larger financial problems and possibly criminal charges? If you are accused of deliberately defrauding someone by writing a bad cheque you could face criminal charges. As well if you have written a bad cheque in the past your bank or financial institution may put holds on the cheques you are trying to deposit. This can significantly impacted your day to day banking & possibly make you late on paying your bills or worse paying your mortgage payments.
What Rate Should I Pay For A 2nd Mortgage? What Your BC Mortgage Broker Should Know & Tell You!
I get this question every week, “What is your best rate for a second mortgage?”. The answer is not as simple as one might think.
How to pay for vacation or payoff your vacation loan?
Now that we are into the Canada Day Long Weekend, here is a blog that might help someone you know or perhaps you’re considering how to pay for much needed vacation expenses. We all either know someone or have done it ourselves; borrowed too much or extended our budget too far in search of that dream vacation.
Why Pay Property Taxes? Well your property tax payment is one of the largest revenue sources in the Province of BC. These taxes are critical in helping provide programs & services in communities throughout British Columbia.
