I recently helped some clients obtain a private money loan for a home they own in Walnut Creek, CA. Here is the story why a private money loan was the best solution for them.
My clients purchased this home for their daughter and husband. They purchased it with cash, so there was no loan on the property. Title was held by the daughter.
The husband became un-employed, and they were financially struggling. My clients wanted to help them during their rough economic time. Everyone decided that the best option was to deed the property back to the parents (my clients). They contacted me to help them obtain a cash-out private money loan.
A private money loan was the best solution for a couple of reasons. The first reason was we could close a private money loan fast! A private money loan is not as paper intensive and bureaucratic as obtaining a loan from a financial institution.
The other reason a private money loan was the best solution was qualification. My clients would not have qualified for a loan from a financial institution because of issues having to do with changing of how title was held.
The private money loan they obtained was at 11% with interest-only payments and a three year term. I expect they will be able to refinance out of this private money loan to obtain a better rate during the next year.
The private money loan solved the problem, at least in the short-term. Cash was obtained in order to help my client's daughter and her family. The payments are interest-only, which helps keep the payment lower. Most importantly, this private money loan eased the stress level during this rough economic time for this family from Walnut Creek, CA!
If you can't obtain a loan from a financial institution, and you really need money, a private money loan can be a short-term band-aid to meet your goals!
Phil Caulfield NMLS #386911 APMC #1850 has been helping people obtain mortgages since 1985. The views, articles, postings, and information listed at this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.