Some Facts About Scottsdale Az Mortgage
The origination of private money loans can be made with a Scottsdale AZ mortgage lender
. The lenders may be individuals, profit sharing plans, or pension plans, mostly from the southwest.These lenders can arrange commercial and investment property loans, as well as land development and acreage loans. They can also handle loans like a deed of trust and contracts for which the sellers hold the mortgage.
Some loans from mortgage lenders are investment property loans. They are amortized over a twenty year period, and there should be no prepayment penalties involved after six months, but each lender is different, so you need to shop around when purchasing investment property in Arizona.
When a seller has sold his land and carried note, he may find himself strapped for cash. Arizona mortgage companies can step in and lend money to the seller, because the note and deed of trust for the land is collateral that they can use. Or they may just purchase the deed of trust.
People may also go for private loans for other reasons, as well. For example, if a person owns an apartment building but the vacancy rate is not fitting with the banking institution, the owner may seek a private loan. Maybe the property does not have a seasoned rent roll to satisfy the institutional lender. Or one may need a loan in a hurry and cannot afford to wait for the bank loan waiting time of several weeks or months.
Or a borrower may just find that the speed of the private loan better fits his needs. And a private loan may have no environmental fees, low appraisal fees, and less legal fees. You should also ask the lender is they have Errors and Omissions insurance, in case their information is in error.
A borrower may have to pay off a balloon payment and timing is a factor. An investor of a mobile home park may need to install a septic tank and dig a well, as well as purchase another trailer for the park. They intend to pay it off within six months, and they look for a private lender with no prepayment penalties to fit their needs.
There are mortgage lenders and private lenders who deal with safe yield loans at a twelve to fourteen percent rate of interest. Higher rates, for example at the sixteen to twenty percent rate, are for the higher risk or foreclosure loans.
It is best to shop around for the type of private loan or mortgage you seek. It must fit your needs. Be open and honest with the Scottsdale AZ mortgage lenders, and you will find that they can probably accommodate you in the ways that you require.
by: William Wilson