Playing with monkeys is fun, however finances are nothing to “monkey” around with.
Mortgage loans -Borrowers who CAN qualify with a local bank or mortgage officer are better off to go that route than to borrow from me. On the other hand, if you are self-employed and do not show much income or you are new at your job, or possibly work a lot of overtime and therefore do not qualify, I may able to help. You must have an adequate source of income.
I only offer financing for properties that are in the D/FW area and are being sold at a fair market value. I do not finance homes that are huge projects and require a ton of work. Homes must be move in ready for either an owner occupant or tenant. I do require that the buyer make a minimum 20% down payment on the property. If this is for a single family it must be a new purchase (does not have to be a nearly built home, just new to the buyer). Texas law does not allow a private investor like me to refinance or do a home equity loan on an existing homesteaded property. Investment properties and commercial properties can be refinanced, or cash out deals along with new purchases.
The typical loan I fund includes a minimum 1% origination fee, and $500 administrative fee, and a common TREC real estate contract. I require a clean title policy that protects the buyer and lender from my preferred title office. The borrower is responsible for all fees associated with the loan. The borrower can roll these fees into the loan and pay me the fees at the time of funding. I always allow my borrowers the ability to pay off loans early with no prepayment penalty as long as I am given at least a two week notice of payoff and the entire principal balance is paid in full at one time. Interest rates currently vary between 10 and 12 percent and these are interest only loans for up to 5 years. These are NOT adjustable rate mortgages.
This type of scenario creates a WIN for the buyer, seller, buyer’s agent, seller’s agent, title company, me, and the traditional mortgage officer who will eventually get to refinance the loan for the borrower. Plus the borrower gets to start benefiting from the appreciating real estate market, and gets the tax advantage of being a homeowner.
In most cases buyers who don’t qualify for a normal mortgage are limited to only being able to purchase a house where owner financing is being offered. With this option, buyers have much more flexibility in what house they purchase.
Please keep in mind that these loans are being funded by me personally. I underwrite the loans. I must meet with the borrower in person. I do not broker these loans out nor do I sell them after they are funded. It is extremely rare for a borrower (or anyone else involved in the home buying process) to get to speak directly with the lender. Usually, a loan officer communicates with the other parties and an underwriter in a remote office far away is making a decision based on several different rules and regulations. I am not doing this as a welfare project. I am simply taking an active role in managing my resources in order to get a better return on my money than I can get from a CD or a mutual fund.
Non-mortgage loans – I do not lend money without having collateral that is worth at least three times the amount of the loan. The collateral must be owned by the borrower free and clear and must be left with me. The collateral must be quickly and easily liquidated so that I may recover my investment in the event the loan does not get paid back. It must be easy to quickly determine the value of the collateral. Good examples of collateral are cars, motorcycles, ATVs, non-owner occupied houses or other real estate. I don’t assign any value to sentimental items like your grandmother’s nightstand or your baby toys when you were a child. I typically do not do loans of less than $5,000 either. So, you’re going to need to have at least $15,000 in collateral that you can leave with me in order to be considered. My rates are less than half of what most payday lenders and car title lenders charge.
If you are interested and would like to find out more please fill out the form on the contact page and I will get in touch with you.
www.855jamesbrown.com 