Private money loans are a type of financing provided by private individuals or organizations, rather than traditional financial institutions like banks or credit unions. These loans can be used for a variety of purposes, including the purchase of real estate, home renovations, or cash for just about anything. Private money loans often have shorter terms, higher interest rates, and higher costs. They typically have specific property lending criteria, and lower loan-to-value maximums depending on the investment risk tolerance of the lender but may be easier to qualify for otherwise. They are typically used by borrowers who may have difficulty obtaining financing through traditional channels, such as those with poor credit, unique property types, land, or lacking the ability to fully document income. While private money loans can be a good option for some borrowers, it’s important to carefully consider the terms and conditions before entering into an agreement. Amerifund can help you explore all of your financing options and determine which one is best suited to your needs.
Private Money Loan
What Is A Private Money Loan?
The Benefits of Private Money Loans
- Fast turnaround time
- Flexible underwriting guidelines
- No prepayment penalties
- Can close in as little as 7 days
- Can fund non-traditional properties
Who Should Consider a Private Money Loan?
- Investors in need of fast financing
- Real estate professionals facing time constraints
- Borrowers with poor credit or limited income documentation
- Have a stable income
- Have a low debt-to-income ratio
- Have a clear title to the property being financed
- Have a clear understanding of the terms and conditions of the loan
- Be able to provide collateral or security for the loan
- Be able to provide a clear exit strategy for paying back the loan
Want to learn more about Private Money Loans? We're happy to help!