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%.
A hard money lender can mean different things to different people. In BC real estate this refers to individuals or companies like a (MIC. Mortgage Investment Corporations) that lends mortgages outside the banks strict lending guidelines. In the mortgage industry we refer to hard money lenders as private mortgage lenders or home equity lenders.
A Foreclosure is a legal action that a lender can take if a person or company who borrows money using a mortgage stops making payments on the mortgage or violates any terms of the mortgage like “example” outstanding property tax or fire insurance policy that elapses etc.
Why Is Loan To Value Important To Mortgage Lenders
Loan to value is important to mortgage lender because it help them to determine risk. The higher the degree of risk for the lender usually indicates a higher rate of interest and costs applied to the loan.
If your income doesn’t qualify you for a bank loan and a B Lender is your only option, you might be wondering how much B Lender mortgage rates would cost you. B Lender rates in BC Canada for 1 year fixed rates can start as low as major banks’ 5 year fixed rates. What is important to keep in mind though, is that B Lenders do charge a lender’s fee while the responsibility for all legal & appraisal costs is on you. Since not all B Lenders have the same fees and their mortgage rates are set on a case by case basis, there may be additional costs involved, so get in touch for a complete review of your situation.
For the self employed it is common to wonder if you can get a home equity loan if you are self employed and have low income. Many self-employed individuals think due to their business for self income that banks & other lenders are less likely to approve them for a home equity loan. Banks do have tougher criteria for approving a HELOC and usually look at things like credit & income documents but there are many products out there that can help.
Private mortgage lenders fill the gap when banks and home owners needs do not match. In life there are ups and downs but for bank profits they only want to look at the ups. This is where private mortgage lenders come into play. They will consider financing solely based on your homes equity not income or credit.
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.
If you are a home owner in BC with a mortgage, credit card debt, store cards, interest free deals that are expiring soon, personal (LOC) lines of credit, car loans or personal loans you could uses this how to techniques to better your cash flow and help improve your credit score. If you are a home owner with only a mortgage and low debts these debt consolidation techniques probably do not apply to you.
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.
