The Benefits of Private Money Loans

Let’s say you’ve found some great real estate property that you want to invest in but you don’t have the funding figured out yet. Sure, you can go to a bank and wait for them to approve your loan, but you might end up missing out on purchasing the real estate you want. Instead, you can look into a private money loan so that you get the funds you need quickly. A private money loan is a type of financing between a borrower and a private individual or individuals that is backed by actual property. There are a lot of benefits associated with obtaining a private money loan from a great lender like All American Financial Services. Keep reading on below to learn more.

1. Less Documentation Required

If you’ve ever applied for a loan at a bank before, you know how many hoops you have to jump through just to submit your loan request. The great thing about private money loans is that you won’t have to put together as much documentation as you would with a bank loan. Sometimes you find a hot deal that you want to get done right away, which is why a private money loan is a good option. Private money lenders will offer you a loan based on qualified collateral so you don’t have to wait so long to get approved. Less documentation means getting the deal done quicker.

2. Fast Funding

The real estate world moves very quickly. If you aren’t careful, a deal can pass you by in the blink of an eye. Traditional bank loans can take weeks to get processed, which isn’t acceptable for people that need to purchase real estate as quickly as possible. With a private money loan, you can expect to get your money fast. Most private money lenders will be able to help you obtain the funds you need within a few days or even hours. If you are in need of a private money loan, reach out to All American Financial Services today.

3. Avoid Hidden Fees

Often times when you are applying for a loan from a bank, you will end up paying hidden fees. You are required to sign the bank’s paperwork and accept their terms, no matter what kind of hidden fees are attached to the deal. With a great private money lender like All American Financial Services, you won’t have to pay for hidden fees to get the deal done. Typically, all of the repayment requirements and costs are laid out in an easy to understand way.

Private money loans are a great option for people who find an amazing deal on real estate and need to get the deal done quick. They are a fantastic alternative to bank loans and can provide you with a great opportunity to get funding as quickly as you possibly can. If you have any questions about private money loans or would like to apply for one, reach out to All American Financial Services today.

100% Financing Loans Explained

Buying a home is a primary goal for tons of people. However, the financial requirements for becoming a homeowner are one of the main things that prevent many people from pursuing their homeownership dreams. Coming up with a down payment on a home is simply too much to ask for lots of people. However, there is a loan option out there which allows people to purchase a home without putting down the money for a down payment. This loan type is known as a 100% financing loan. With a 100% financing loan, buyers are financing the entire purchase price of the home. If you are interested in a 100% financing loan, keep reading on below or contact All American Financial Services to learn more.

You might be wondering why a company would offer a 100% financing loan. Banks and loan companies want to get paid back, which is why they often require a down payment. Logically, if someone puts down a larger down payment, they are less likely to default on the loan. However, there are government sponsored programs out there that insure the lender and allow people to purchase their home without putting down the 20% down payment that is normally required.

The two main ways to obtain a 100% financing loan to purchase a home are with VA home loans and section 502 rural housing loans. These are government sponsored programs that help people get into homes if they don’t have enough money to put down the down payment on a property. Which one you go with will depend on your eligibility. The VA home loan is intended for people that have either 90 days of military service or that served in the military for at least two years. VA loans tend to have very low rates, which is great news for veterans that are looking to start a family in a new home. They are often the most affordable loans available when you compare them to the other options on the market.

If you are interested in applying for a 100% financing loan, keep in mind that it’s typically the buyer’s responsibility to come up with the closing costs. This can be an additional cost that comes as a surprise to 100% financing loan recipients. It’s important to look into all of your options for dealing with closing costs, as you can possibly receive a closing credit cost from the seller to take care of this additional expense.

We hope this article has provided you with some valuable insight into the world of 100% financing loans. Just because you can’t afford the down payment on a home doesn’t mean you can’t become a homeowner. Contact All American Financial Services today to hear more about our loan options and receive help with applying for financing. We can let you know what loans you might be qualified with and answer any question you have about our financing options.

Advantages of Construction Loans

If you are an aspiring homeowner looking to build your house from the ground up, you will need to obtain financing. There are tons of options out there for getting the funding you need to purchase or construct your own real estate. Finding the best option for you is easy with All American Financial Services. We offer construction loans so that you can construct the home of your dreams. There are several advantages to pursuing a construction loan. It’s an option that can really make a difference. Keep reading on to learn some of the major advantages associated with pursuing a construction loan.

Low or No Initial Payments

A great feature of obtaining a construction loan is that they are normally interest-only during the time period when your home is being constructed. That can be a big help from a financial perspective because you won’t have to spend a ton of money up front while the home is being built. Sometimes, construction loans don’t even require any interest payments until after the home has been fully constructed. After the home is constructed, your payment of the principal on the loan usually begins.

More Control

With a construction loan, you are gaining the ability to control every aspect of the construction of your home. You can personalize every aspect of your home if you’d like and have the control to make changes as things go along. A construction loan provides you with a lot of control during the construction of your home, which is ideal for people who are seeking flexibility. The loan typically will cover the cost of the work and the materials needed to construct your home from the ground up.

Two Loan Options

Construction loans are typically offered in two different types, which means you have more flexibility. A construction-to-permanent loan is designed to provide you with the capital needed to cover the construction of the home. After the construction is finished, the loan becomes a permanent mortgage. A construction-only loan, you will take out two loans. The first loan will be short term and only used to cover the construction of the home. After you move in, you will then take out a mortgage loan to pay off the construction costs. You will pay two sets of fees with this option, but you won’t need to put down as big of a down-payment.

Construction loans can provide you with the capital needed to construct the home of your dreams from the ground up. They offer flexibility and control for future homeowners that aren’t sold on traditional mortgages. If you are interested in hearing more about construction loans or would like to apply, reach out to All American Financial Services today. We can provide you with more information on the construction loan process and let you know what you need to do to apply for a construction loan with us.