Private Hard Money Loans In California: 3CALOAN

Private hard money home loans are issued by a non-institutional individual to borrowers. The home loan comes secured on the basis of a note and deed to trust for a real estate transaction. Private money lenders typically have some type of relationship with the borrower as opposed to private hard money home loans. Private hard money home loans are short-term loans secured by real estate. They are usually a 12-month term loan, but they can extend from 2 to 5 years as well.

Why Do Private Hard Money Home Loans Close Faster?

You will love the private hard money home loans because they close faster than any other home loan. If your home loan closes faster than there will be a better chance of beating out your all competition and also getting the property which you want to buy. Generally private hard money lenders will close your home loan faster due to some of the factors that are given below:

Asset-Based Lending

Generally private hard money home loans lenders don’t care about the credit history or any bumps that can damage your credit score, they only focus on the deal in their hand. Due to this, private hard money lenders save time to not dig into the borrower background to analyze the financial history. They don’t care about the credit card payments which you have done or not in the past or any other mistake by you which can damage your financial health. So in this way lenders are able to do closing faster than the other home loans.

Paperwork

When you will apply for a Private hard money home loans there is very less paperwork as compared to other home loans. For getting approved for this home loan you don’t need to show your paystub for income verification neither credit history for getting a credit score. So, this means you don’t have to complete as much paperwork as you would with a traditional loan. This saves you weeks and you get property much faster.

Approval

Private hard money home loans lenders approval process is significantly shorter than the bank process. You will deal with only one person throughout the loan process and that person will almost always available for you. Private hard money loan lenders have the ability to close loans faster and sometimes in as little as 24 hours.

Final Thoughts

Contact us if you would like more information on hard money and private lending. 3CALoan local mortgage broker also provides no tax return home loan which is also called no tax return, without tax return, private hard money home loan, private hard money loan, bank statement home loan, bank statement loan, equity loan and many more. For the down payments and interest rates, hard money loans are completely different from other home loans. People like real estate developers, house flippers, builders, and contractors are commonly found opting for this type of home loan. Our goal is to provide opportunities for people to meet their financial goals through alternative financing options. We can help and guide you through the process. Feel free to contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of home loans and hold your hand throughout the process.

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Home Closing Fees Can be Lowered: 3CALoan

Being a good homebuyer, you have settled and negotiated on the home’s value but it is not everything. You are more opportunity to save your money. One of them is by lowering your home closing fees while buying a home. Home closing fees consist of services and specific fees that you have to pay for closing on your home loan. The closing fees will generally come in between 2% to 6% of the home value but it is also dependent on your loan program. Here are some strategies that you can use to save your money on closing fees your loan.

ALWAYS SHOP AROUND

If you taking the home loan first time than you may not realize that many of the fees and rate with the home loan process are negotiable. Every real estate agent or lender will recommend you certain home inspector or company to use. Their recommendation will be good for your home loan process. So, you should follow their recommendation. You can also compare the prices for these services so that you can get the best deal.

THINKING BEFORE BUYING POINTS

You also have the option to “buy down your rate” but it will only dependent on your home loan program and loan lenders. Discount points will work when the cost of the one point will be the 1% of the home loan’s value. It is worth paying points in exchange for a lower interest rate if you have decided to stay in your home for a long-term. You should calculate before making any decision about the points.

ASKING THE SELLER TO SWEETEN THE DEAL

You should discuss the closing fees with a lender before trading with a seller. In some loans, the seller can pay a percentage of the home price as a closing fee to buyers but the amount which seller can pay will be dependent on the loan program. If there is no detail in the card about the cash contribution, you can simply ask a seller to decrease the amount of home price to help balance the closing fees that you will pay.

COMPARING LOAN ESTIMATE FORMS

You should compare few lending institutions so that you will find your best option for the home loan process. You should have trust on the lender. Every lender had a different term and unique fees mentioned in their loan estimate. So, you should ask questions if you don’t know about any of the charges which are meant in the loan estimate.

RESEARCHING HOMEOWNERS INSURANCE OPTIONS

There is homeowners insurance which you will pay monthly with your mortgage payment, but there is one more type of insurance which you have to pay during the time of closing. So, you should be ready for the insurance cost at the closing. You can save your money on home closing fees by choosing the less expensive insurance policy.

TAKING ADVANTAGE OF A MILITARY STATUS

If you belong to the veterans and active duty military family then you are eligible for the VA Loans. VA Loans offer a zero percent down payment. So, if you can qualify for the VA loan then you don’t have to pay the down payment that alone can make huge savings. In VA Loans, there are many ways to minimize the home closing fees.

Final Thoughts

Buying a home is the best investment that you can make in your lifetime. You can save your money by finding some ways to minimize your closing fees. You can use that money to reinvest in your home which you have saved at closing fees. Just be sure that for saving few amounts, you are not sacrificing the quality. After all these steps you will be on your way to decrease the home closing fees. For more helpful home buying tips, 3CALoan can help you find your answers. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. Contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.

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USING HARD MONEY LOANS TO FLIP YOUR HOUSE: 3CALoan

From last few years, flipping houses has become very popular. Books like Rich Dad, Poor Dad by Robert Kiyosaki and few TV shows like Flip this house can give you a big knowledge to Flip Your House Easily.

SO HOW DOES HOUSE FLIPPING WORK?

To easily flip your house you can buy a home for a cheaper price, fix up the things which need to fix in the home and then sell it for more price which you paid off early to buy that home. This is only possible if you have a start-up capital to purchase a home and you can only earn the profit by selling the home quickly. Generally, many people don’t have enough capital to purchase the home and neither bank approves the short-term loans. What will you do when you don’t get the loan from the bank? You can try Hard money loans.

HARD MONEY LOANS

Hard Money loan comes secured on the basis of a note and deed to trust for a real estate transaction. So by taking this loan, you can easily purchase a house to flip. As compare to banks these loans are much easier to obtain. Private money lenders fund hard money loans, which are short-term loans secured by real estate. They are usually a 12-month term loan, but they can extend from 2 to 5 years as well.

HARD MONEY LENDERS

Hard money lenders are a non-institutional individual or a company that gives a loan to borrowers. Private money lenders typically have some type of relationship with the borrower as opposed to hard money loans. Hard money lender can easily provide you access to money and you can use that money to flip houses.

WHY YOU CAN’T BORROW MONEY FROM A BANK?

You will find difficult to approve the short-term loan from the bank, but it is possible to obtain these types of loans. Banks make their money off of the interest rate that they charge you on the loan. Bank will generate greater money in long-term loans than in short-term loans, which is why they’re difficult to obtain.

BENEFITS OF USING A HARD MONEY LOAN

• Hard money loans are easier to be approved for than bank loans.
• Hard money loans are quicker to obtain than bank loans.
• You can pay off your loan and the interest payments quickly.

Final Thoughts

Hard Money Lenders will look at your pay stubs, your credit ratings and tax records. If everything checks out then they will request you to put money down. After all these steps you will be on your way to the flip your house easily. If you are interested in exploring the options of private hard money loans 3CALoan can help you find your answers fitting your personal and housing needs. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. To find out more information about hard money loans and how we can help, contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.

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YOU CAN USE TAX RETURN IN HOME-RELATED THINGS

Almost all Americans are expecting a tax refund in the coming week. If you are one of them and thinking to go on a trip, a shopping spree or something fun but these ideas will make your money burning a hole in your pocket. You can think something different and meaningful to use that refund. Your home is the best place to start. One of the smartest financial decision of that tax refund is putting them towards a real estate investment. Below, we will discuss the ways you can put that tax refund in good use.

PAY MORE ON YOUR PRINCIPAL BALANCE

The big amount can be saved over the life of your loan by applying for an additional mortgage payment. You can pay two additional mortgage payments for the year even with your refund of $3,000 which is the average tax refund. May not find that significant, making two additional payments every year but even if you do it once you can save a large noteworthy quantity of interest over time.

PAY DOWN DEBT

If you have any plan to buy a home soon by taking out a mortgage, then it is a good idea to paying down your debt. It will give a good impact on your capability to buy a home because every lender checks the debt-to-income ratio. The lender will compare the amount you owe and the amount of income you bring in with that mortgage. Lenders require your total debt to be less than 44%.

STAGE YOUR HOME FOR A QUICK SALE

Thinking about selling your home? Choosing to stage your house prior to listing it can significantly decrease the length of time it’s on the market. You could say it’s an investment that will pay off in dividends if it means your home sells more quickly – because you’ll end up saving on mortgage payments, utility bills and other home expenses in the long run.

SPLURGE ON NEW APPLIANCES

If you have any plan to buy a new home real estate soon then buying new appliances is probably not at the top of your to-do list. But there are a few reasons which make this a good idea.

Every household appliances have there owned expiry time period from 8-12 years and after that time period, they stop working or they cause harm to your home. So, it’s better to replace them before they get worse. There is one more reason for buying new appliances is while selling your home they may not break or make your new home real estate value but it certainly can speed up the selling process of your home by making it a shiny new suite of appliances.

 IMPROVE YOUR HOME WITH A DIY PROJECT

Smaller projects can increase your home’s sale price because it will improve the cosmetic appearance of your home. Here are some projects to consider for this:

• Give your home new life with a coat of paint– You can transform your room with a beautiful color and calming neutrals are the best option for you if you are planning to sell your home in future.
• Add some charm with a new front door– If you have a steel front door then you can upgrade that with the craftsman-style wood door. It will change the appearance of your home from the outside and you will also receive the compliments from your guests.
• Refresh your kitchen with a backsplash– From a new backsplash, you can transform your room completely. Even if you don’t like your room cabinets, a beautiful backsplash will change your opinion by brightening things up.
• Replace light fixtures in your home– You can change your home’s lighting option with the modern ones. You can also try to consider those lights to match your doorknobs or cabinet because this looks more attractive.
• Install new flooring– New Floors have some options which are amazing and are very inexpensive. By installing new flooring you can transform your room.

Final thoughts

Feeling inspired to use your tax refund wisely on your home this year? It takes a small amount of money to make a huge impact on improvement to your home or for your future home. We help our customers every step of the way. We prioritize informing and educating our clients about the loan process or anything which is related to the loan process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. Feel free to contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details and hold your hand throughout the process.

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STRATEGIES For Using Hard Money Loans Southern California

Hard money loans southern California are issued by private investors or companies. They are usually a 12 months term loans, but they can extend from 2 to 5 years as well. This type of loan is a specific type of asset-based loan financing. Hard money loan lenders are private investors or companies that have funds to issue a hard money loan. Hard money lender should be quick to have an advantage of lending opportunities. You should learn few things about hard money loans or you can contact any hard money lenders in California before you opt them so you can avoid pitfalls and sticky situations. Hard real estate loans are short-term loans secured by real estate and the interest rates are much higher as compare to traditional financing. In the commercial real estate world, the hard money loans play an important role. These are some strategies where hard money loans may make sense for you.

CAPITAL IMPROVEMENTS

If there is a need to renovate, repairs, or capital improvement to the property then it is a good option because it would increase the value of your property from both rental income standpoint or a valuation. In this case, you should try to get the shorter duration of higher interest loans to increase the value of your property. You can realize the increased value of your home after the work will complete.

PURCHASE OF A PROPERTY

When you want to purchase a property, often the period of purchasing is very critical. Private lenders usually serve this type of market and they provide major tools in buying a property. While purchasing the property there are two things which are very sensitive that is strategic property purchases and attractive real estate opportunities. Traditional lenders are not good in these types of purchases because they are not able to finance quickly. Hard money loans Southern California are much quicker than traditional loans in the evaluation of the loan, approve of the loan and closing of the loan.

DEVELOPMENT

If you own a piece of land and want to build with a ground-up development. You can’t able to get this type of loan from traditional lenders but hard money lenders offer this type of loan. While assessing the creditworthiness of the project lenders will always look at some variables like collateral, your equity in the project, project presentation, your development experience, timeline, and the financial reserves of the borrower. If there is something bad about these factors then the traditional lender will decline the project financing. Hard money lenders will also consider these factors but they weigh the attractiveness of the overall project, not just these factors.

 UNDERVALUING/UNDERPERFORMING PROPERTIES

Private lenders have some good candidates like the property that are performing below market efficiency and undervalued properties. Traditional loans usually don’t serve these loans due to the underwriting guidelines related to income statements and current expenses and on the other hand, the primary focus of hard money lenders are on the value of underlying property.

LOAN UNDERWRITING

In traditional real estate loans, the primary focus in the underwriting of loan is your creditworthiness. In underwriting of a loan, there are some factors will affect the loan like bankruptcies, high debt levels, foreclosures, late payments, mechanic liens, and tax liens. For hard money lenders, the cornerstone of the loan is the property itself but they can establish asset-based loans.

Final Thoughts

There are many types of loans for financing real estate but hard money loans are common in financing real estate. These loans allow you to buy and fix the property which you want. Going with a hard money lender instead can be a good way to avoid traditional financing options. For the down payments and interest rates, hard money loans are completely different from other loans. People like real estate developers, house flippers, builders, and contractors are commonly found opting for hard money loans Southern California. Our goal is to provide opportunities for people to meet their financial goals through alternative financing options something different from the traditional method of money lending. We can help and guide you through the process. Feel free to contact us at (818) 322-5626 or (818) 3CA-Loan today! We will run you through the details of loans and hold your hand throughout the process.

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Ways a California Home Equity Loan Works for People to Earn Extra Money: 3CALoan

Almost every American homeowners need extra money for their basic needs like healthcare bills, college education, home renovations or something else. At the same point being a homeowner you probably will have one benefit that you can use your substantial equity for anything you like. To have that money quickly, you have some home equity options in your home. California Home equity loan is one of the popular loans, as well as an equity line of credit. From this article, you will understand how equity loan will help you.

Pay a Low-Interest Rate

Most people use home equity loan to fund whatever they want to purchase because from home equity loan they will get much lower interest rates than on an unsecured credit line. The reason they get a lower interest rate is that the loan is secured by your property. This means you will lose your property if you don’t pay the full loan amount to the mortgage company. They will foreclose your property, and to get their money back they will resell it. The interest rate is higher in the unsecured credit line such as credit cards. In credit cards, there is a higher risk for your lender because the loan is not secured by any physical property. So, they charge a high interest rate. It is a good idea to opt home equity loan because you can pay as competitive interest at current rates.

Tax Deductions

This is also a big reason that people like to opt for home equity loan for their purchases is that the interest which they are paying is usually tax deductible. Many people in California can easily save $750 or $1500 on their annual tax bill for a home equity loan on a home value of $150,000.

Cash Payment All At Once

California home equity loan provides you one advantage to single lump of cash all at once. According to your situation, this can have some advantages. You may need to pay some expenses all at once, like a major car repair or medical bills all in one payment. There is one more advantage that latter you can terminate or reduce your home-equity line of credit if the value of the home drops or if you stop paying the loan.

Home Improvements

California home equity loan is one of the most popular loans among California homeowners for home improvements. Improvements like upgrading bathroom or add an extension, kitchen, renovating your home. Before taking out the loan you have to figure out what home improvement you can earn the best return on investing in your area. You should consider that how much money you should spend on your home renovation. You need to be careful while your home improvement that you don’t take the renovation too far.

Paying Off Debt

It’s a good idea for you to pay off credit card debt with a home equity loan because it is a fixed rate loan. When you use home equity loan to pay off your debt then you will pay a much lower interest rate than the other credit lines. The interest rate on home equity loan might be 4% and it’s a tax-deductible but in credit line such as credit cards they will charge you 15% or more and they are not tax deductible. Some people also take home equity loan to pay off credit cards and it can be dangerous for your home. There should be a right reason while taking out a home equity loan for paying off your debts.

Final Thoughts

There are many lenders in California. However, 3CALoan can help you find a mortgage loan fitting your personal and housing needs. Our competitive rates, efficient services, and talented team can help to find the percentage of your Income you can afford for your Mortgage. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. To find out more information about mortgage and how we can help, contact us at (818) 322-5626.

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Is it a Good Idea using Retirement funds to buy a home? : 3CALOAN

If you maintaining your retirement account since you are an adult, then maybe you don’t have enough amount to put down on a home. However, you can use your retirement funds to buy the home which you want to buy but it’s your choice to use it or not. There are many taxes and penalties which you have to consider while purchasing a home. You can make the right decision by considering the following things.

Benefits of Using Retirement funds to buy a home

• Pay yourself interest –If you opt any loan then you do have to pay an interest rate. But if you use your retirement funds then the interest rate which you pay is the money back to your own account. From this, you don’t have to give any interest rate to the bank and you are not giving any profit to them.
• Avoid PMI – By putting 20% down payment of the home price with your retirement funds then you don’t have to pay PMI. By taking PMI it makes harder to afford because it usually adds quite a bit to a housing payment. PMI is the money which you’ll never get back. You can avoid it by putting 20% down payment of the home price. From this, you can save thousands of your dollars.

Disadvantages of Using Retirement funds to buy a home

• Job Risk– Almost all of the loans are due within 5 years. If you left your job for some reason then, the loan may become due and payable immediately.
• Potential of your investment- By using retirement funds to buy a home you will lose the earning power of your money. The money in your account is not just the money which you kept in your account but it is a compound interest that you earn by keeping the money in your account. Even if you will borrow for a short time period it can also diminish your savings.

Alternatives to Using Retirement funds to buy a home

• Reduce contributions to a retirement account – You can eliminate or reduce your contributions before you’ll buy a home. You will have a better situation if you will save for a down payment and contribute.
• Obtain money from a relative – You can use gift funds in some loans programs like FHA and conventional loans. You can ask your loan officer if there is any program that suits your situation perfectly.
• Lower down payment – There are many programs which require a minimum of 3.5% down payment of the home price. So you opt for any program if you can’t arrange a large down payment. There are also a few programs which also require no money down like USDA and VA loans.

Final Thoughts

It is your personal decision that whether you can you use Retirement funds to buy a home or not and you should explore all of your options. You should talk with your tax and loan officer in every situation even if you want to use your funds. If you do everything right, you can gain the benefits of using your retirement funds and saving money on your loan in the long run. 3CALoan can help you find your answers fitting your personal and housing needs. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services. To find out more information about manufactured home loans and how w can help, contact us at (818) 322-5626.

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HARD REAL ESTATE LOANS: 3CALOAN

Hard real estate loans- Hard real estate loans are short-term loans secured by real estate and issued by private investors or companies. They are usually a 12 months term loans, but they can extend from 2 to 5 years as well. This type of loan is a specific type of asset-based loan financing.

SITUATIONS WHEN A HARD MONEY LOAN CAN HELP

Real property secures the funds the borrower receives. There are many purposes of Hard real estate loans in California. The property can be used as collateral against private money loans in which you are planning to invest. You need a qualified investor that can help you better for such loans. Hard money loans can be used in many situations which we will discuss below:

WHEN YOU NEED HARD MONEY SECOND MORTGAGE

When you have financed a property through borrowing. However, you need some amount of capital to make the necessary renovations to improve the value of a property then opt for hard money second mortgage. There are many traditional loans which can cover the cost of your property and little less, so it may be not for sudden improvements. Because of your existing loan, you may not get the cash for your property renovation, but a hard money second mortgage can help you in financing the amount of capital to make the necessary renovations to improve the value of your property.

WHEN YOU’RE DOING A REBUILDING PROJECT

In the situation when the old properties have purchased by the investors and they refurbish the property and after that, they try to sell that property at a profitable rate. Generally, in California, the private money lenders are the founders of such deal. Investors can make a profitable investment for you by working little on such properties. If the property is in the poor condition, then it will be easy for an investor to avail it at lower rates or profitable rates. To invest in this type of deal, you will need an investor who will better understand your needs.

WHEN YOU ARE CONSTRUCTING A NEW BUILDING

When you planned to build a new building on your vacant plot then hard money loans can be a better option for you. In this project, hard money loans offer to fund without extensive underwriting that goes into traditional lending. The creditworthiness of a project, financial reserves, including equity, development history and timeline are determined by some factors which are generally considered by traditional lenders. You can pay back the loan by selling the property after the construction will be completed.

WHEN YOU’RE COMPETING WITH OTHER INVESTORS

When you have found a good property to invest and you think it will be a profitable property for you. However, others investors also have the same thinking and they are now competing with you for sale. Traditional loans can’t be processed quickly. They require a long period of time for an approval process before the lender will close and pay out. So, you can opt hard real estate loan because they move quickly and they require as little as 48 hours for an approval process before the lender will close and pay out.

FINAL THOUGHTS

When it comes to real estate transactions, flexibility and creativity are often at the heart of a successful investment. In order to succeed in every venture, you need to know when to seek a traditional loan. A hard money loan can be a significant asset when you need to move quickly or are otherwise unable to obtain a conventional loan, giving you the freedom to build your portfolio and enhance your property holdings without hassles, hoop-jumping, and heartache. You will get this loan very easily If you have all positive attributes. If you have questions about this program, you can contact us at 818-322-5626. You can get hard money loans today. Take the time to contact us right now!

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