7/25/23 Four Types of Private Money Loans

7/25/23 Four Types of Private Money Loans

President | Loan Officer
Mike Meena
Published on August 1, 2023

7/25/23 Four Types of Private Money Loans

We have done several Private Loans or “Hard Money loans” lately for various reasons. There are many different versions of Private loans, and today I will touch on a few of them.

Many of you have heard of our Bridge Loans, and we are currently at 7.99% on these loans, which blows away the competition. We do these loans at these low rates because they are short-term, and they help people with good credit and good equity get from point A to point B promptly, with limited risk to our investors. The fees on these loans range from 0-2 points.

Business Purpose Private loans are usually for a person whose credit is struggling, whose income is struggling, or the property needs more than a hug! These loans require 35% + down and are done on a case-by-case basis. They could be a fix and flip, a construction loan, or a credit repair loan, but no matter what you do, this loan must have a business purpose! These loans require that proceeds go to business purposes. A buyer will typically pay 3-4 points for these loans.

Consumer Purpose Private Loans can be used to pay off a Bankruptcy, consolidate debt, pay a legal settlement, Foreclosure bailout, or more. There does not need to be a business purpose for these loans. A buyer will typically pay 3-4 points for these loans.

We also do trust loans where a person inheriting a property can buy out their sibling’s interests and keep the property tax basis if they move into the property. These are very popular, especially when a parent has a low property tax basis. These loans are usually 2-3 points.

The above loans are tools to get you from point A to point B and are meant for a short time. They are beneficial in many ways, and most of these can close in 10-14 days.

The Fed will likely raise interest rates tomorrow, but that is already built into our market. Many people think this may be the last increase of the year, but we will see. Interest rates could have been nicer over the past few sessions. Let’s hope for a turnaround today!!!

  • 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge
  • We do loans in all states, so call me with anything you need.  
  • Government Loans (FHA / VA) are in the high 5’s and low 6’s.
  • Conventional Loans up to $726,200.00 are in the low to mid 6’s.
  • High Balance Loans $726,201.00-$ 1,089,300.00 are in the 6’s and 7’s
  • Jumbo loans above $1,089,300 are in the 6’s and 7’s
  • Bank statement loans - They are available with 10% down again! 7’s and 8’s + depending on down and credit score.
  • No income qualifier – 20% down with reserves! In the 9’s!
  • 0 down loans are in the mid to high 6’s – 660 credit score min right now, up to $740,000.00.
  • Private Money lenders - hard Money Loans – 35% down!
  • No Ratio Loans 30% down
  • Debt Service Coverage loans with as little as 25% down
  • Bridge Loans - are typically 7.99% with limited fees – But they get you where you need to go!
  • 0 down California Dream for all Equity Share – Postponed until 2024!
  • 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!

Interest rates are subject to change without notice! Above are LA County Loan Limits.

I am around all week if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. Please text me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!

President | Loan Officer
Mike Meena President | Loan Officer
Click to Call or Text:
(661) 714-6258

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