100% Financing Home Loans

What do 100% Financing Home Loans Mean?

These loans refer to the loans that do not require borrowers to provide for a down payment.

The usual down payment of a house is five to ten percent of the actual amount. As such, if you are planning to get a mortgage loan for a house that amounts to five hundred thousand dollars, you ought to prepare to provide a down payment between twenty five thousand to fifty thousand dollars.

However, if you avail of a mortgage loan that provides 100% financing- that means that you won’t have to prepare any down payment fees. But you ought to keep in mind that even if you are availing of a 100% financing loan, you will still have to pay some extra cash for the application and security purposes of this kind of loan.

100% financing home loans are abundant these days. You can easily find one in the Internet. Note that there are also many kinds of no deposit home loans. Among the most prominent of these types are the mortgage loan which also covers the cost of closing on the property, and the mortgage loan that provides the borrower extra cash for furnishing and/or repairing the home.

The Pros and Cons of a No Deposit Home Loan

A No deposit home loan or one that provide 100% financing is applicable for people who are not capable of raising a down payment of five or ten percent of the mortgage loan, but nevertheless, needs to buy a home as soon as possible. This is especially the case for newly wed couples or those who have suffered from losing their homes due to natural disasters or accidents. 100% home financing is also recommended for people who plan to invest in real estate properties.

Among the many benefits of getting 100% financing in home loans is the fact that you can quickly purchase the home of your choice without worrying for the expenses. Also, you won’t need time to prepare money for the necessary down payments. With a no deposit home loan, you can invest in a home and not worry about the possibility that you won’t be able to afford it later when the price of real estate increases. To add to that, some no deposit home loan packages offer financing for other expenses associated with purchasing the house like retrofitting.

However, 100% home loan financing also have some drawbacks. Among these is the fact that this kind of mortgage offers a higher interest rate than the normal mortgage loans. This is primarily because the more money being lent to you, the higher the interest in the long term. Another is that some banks charge extra closing fees such as Higher Lending Charge. Also, you have to know that it is far more difficult to obtain a 100% home financing loan that getting a normal mortgage loan due to the stricter lending criteria.

Last but not the least, getting a no deposit home loan puts you at risk of negative equity. This happens when the value of the home you have purchased decreases after your lender has given you full financing on it. In such cases, the bank or the lending company will request additional fees from you.

Commercial Hard Money Loans 101

Commercial real estate investors compete to buy a wide variety of high-value properties on a daily basis. For some investors, financing properties is a matter of tapping into a bank account. For others, buying investment properties requires securing private financing. However, not all commercial buyers qualify for financing through traditional lending institutions. These borrowers are often served by private lenders who offer hard private financing for the purchase of commercial properties.

Sometimes known as private money or equity-based loans, these loans provide financing when traditional lending institutions simply can’t or won’t. Buyers might not meet the strict requirements of banks or might want to purchase properties that are difficult to appraise. Other investors focus on buying commercial properties that need to be rehabbed, but banks are often reluctant to finance these types of purchases. In these situations, hard money loans can be used to finance properties.

Why Use Commercial Hard Money Loans?

For commercial borrowers, hard money loans make a great deal of sense. After all, making the most of your buying power means not only finding great properties, but knowing when to buy them. They are often used by investors who need to make timely offers on properties and can’t wait on approvals from traditional lending institutions. They can also be used to:
• Purchase distressed properties.
• Finance non-conventional properties.
• Finance ground-up construction projects.
• Bridge gaps between business operating expenses and available funds.

Who Uses Commercial Hard Money Loans?

While they may not receive much attention on TV or in your local newspaper’s real estate section, that doesn’t mean that they aren’t widely used by investors. In fact, commercial private money loans are used by many different types of buyers:

• Seasoned investors who want to leverage the value of their real estate portfolios.
• New investors who want to get a stake in the game.
• Buyers who prefer to fix and flip commercial properties.
• Business owners who want to refinance or cash out their properties.

Investing with Commercial Hard Money Loans

If you’re considering investing in property using a commercial hard money loan, it’s important to remember that good planning is key to realizing a high return on investment (ROI). It’s essential to plan for the property’s use before making a purchase. It’s also a good idea for investors to sit down with their financial advisors and review their equity and holdings so that they can make the right real estate investment purchases with the right type of financing.

Commercial Mortgage Lenders – Hard Money Loans

If you are starting up a new business or wanting to expand an existing one, chances are you will need financing. Whether looking to buy property, machinery, material, or other high cost items, getting the financing to do so can be tough in today’s economic climate.You will find this to be especially true when trying to go through a traditional bank. Even if you are able to get the funding that you’re looking for, you will be waiting for months before the loan finally gets funded. In the recent past, the number of borrowers that have defaulted on their loans has risen drastically. For that reason, banks are being much more cautious before financing any business venture. They are going to be very picky when they do credit checks. If there are any issues, they are going to be quick to turn you down.

Fortunately there are still options for getting financed. Due to the banks refusing to provide funding in today’s economy, a lot of loans are being privately funded. Many private lenders will lend their own money for their own portfolios. These lenders are generally funded by hedge funds or wealthy individuals with large pools of capital. The breakdown of the collateralized mortgage bond market has not crippled these unique lenders. Originating loans is not an issue for them because they don’t have to worry about who may or may not want to buy them. Another benefit to private loans, or hard money loans is that they take a very short amount of time to close, as opposed to conventional loans which often take a few months to fund if you are even able to get the approved. You generally don’t have to worry about a loan committee or huge stacks of paperwork. There are no complex ratios to deal with either. If they like your deal and you have shown them that you can pay back the loan back, then usually they will close your loan no matter how things are going in the conventional marketplace.

Do not get discouraged due to the fact that the conventional mortgage industries aren’t willing to offer financing because there are plenty of commercial mortgage lenders that are able to fund your deal