How To Buy A House With Bad Credit in Arizona: Find a Lender That is There When You Need Them

If you have a bad credit but are eager to buy your own home, you may be finding that traditional banks and loan types are standing in your way. However, many investors and mortgage brokers are here to lend a helping hand to turn your homeownership dreams into a reality by helping you figure out how to buy a house with bad credit in Arizona.

Bad credit can create a situation that feels almost hopeless. You will be judged by loan officers and potential employers before you even walk in the door. If you have rotten credit, chances are you have been denied a home loan, credit cards, car loans, and even jobs.  Many people and companies will stereotype you as being lazy or irresponsible based on your credit number. The truth is, bad credit can happen for a variety of reasons. Divorce, job loss, injury, or illness can cause your credit score to go down. In the current economy the average credit score is in the 600s, meaning that bad credit is more common than you may think. High fuel costs, increased taxes, inflation, and falling housing prices have put a financial strain on many Americans.

If you find yourself in the unfortunate situation of having bad credit, you may think that purchasing a home is impossible. However, there are many loans that you may be able to qualify for, even with rotten credit. If you find yourself wondering how to buy a house with bad credit in Arizona, there are a few things you need to know. First and foremost, it is possible to qualify for a home loan with bad credit. There are a number of programs and loan types geared towards sub-prime or bad credit borrowers. Secondly, there are specific benefits and risks associated with each type of loan. Knowing all the benefits as well as the risks can help you make an informed credit decisions

.

Arizona Home Loan Types that Benefit Bad Credit Borrowers

One type of loan that can benefit you if you have bad credit is an FHA loan. An FHA loan is a loan type that is insured by the federal government. In order to obtain an FHA loan, you need to work with an FHA accredited lender. The lender will approve you for the loan based on your income and credit score. Each month you will pay extra in the form of a monthly insurance premium or MIP. The MIP will vary based on your loan amount and the value to debt ratio of the property you purchase. The reason you pay this insurance premium is to insure you loan against default. If you default on the loan, the FHA will pay the bank back. This is why an FHA loan is an ideal loan type for borrowers wondering how to buya house with bad credit in Arizona. Since the loan is insured by the government, the bank is more likely to give a loan to a borrower that it views as being higher risk. In order to qualify for an FHA loan, you will need to have at least 3.5% of the purchase price to put down so make sure you save accordingly. Not having this could delay your loan.

Another type of loan that you will want to look into if you have bad credit is an adjustable rate mortgage or ARM. . An ARM is a mortgage that has a fixed interest rate for a set period of 1 to 7 years. During that period you will pay a relatively low interest rate, usually lower than the prime rate. After the initial fixed period, the rate will reset to a higher rate and your mortgage payment will increase. Borrowers with bad credit can take advantage of this program as a way to own a home because the initial payments are low due to the low interest rates. Keep in mind that after the rate resets your payment will increase significantly. An ARM is a good option for borrowers who plan on either selling or refinancing before the rate resets. In order to qualify for an adjustable rate mortgage, you will need to have at least 10% of the purchase price to put towards a down payment. If you are buying a home for $200,000, this means that you will need at least $20,000 in savings.

Finally, in addition to ARMs and FHA loans offered by banks and mortgage brokers, there are a variety of private lenders that can help buyers navigate the Arizona housing market. Private equity firms and hedge funds offer home and property purchase loans for both home ownership as well as real estate investment purposes. Private loans will have terms that vary depending on the firm, but they are still overseen and regulated by the government. You may pay a higher interest rate, but you are also much more likely to obtain approval, even with bad credit. Since the firm is private, there is much more flexibility in terms of FICO scores as well as extenuating circumstances that may have created your bad credit.

To help figure out how to buy a house with bad credit in Arizona, 
contact an Arizona real estate agent.

A real estate agent should be able to help you connect with a number of banks, brokers, and private firms to help find the right lender for you. Owning a home can help rebuild your credit. Call a realtor today to help make your dreams come true.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Hard money comes easy as Wall Street funds home flippers

Hard money comes easy as Wall Street funds home flippers for Arizona Home Loans

Real estate buyers seeking Arizona Home Loans to renovate and flip U.S. houses are getting help from some of the world’s biggest investment firms.

Colony Capital Inc., Blackstone Group LP and Cerberus Capital Management are among the companies that have started making bridge loans to investors who buy homes to sell them quickly for a profit. Borrowing costs -- traditionally the highest in residential lending -- are tumbling as the firms compete for customers.

The foray represents a deepening bet on the housing market by Wall Street-backed companies, many of which have built rental-home empires during the past three years and started specialty-lending businesses to finance smaller investors. Big firms with deep pockets and access to cheap capital may have an edge over local private lenders that have dominated flipper financing.

 “It’s one of the few highly fragmented businesses left,” said Beth O’Brien, chief executive officer of Colony’s lending business, which started offering the loans last May. “If someone can do it nationally at scale, it’s cheaper and better for the borrower.”

Bridge loans, also known as hard-money or asset-based loans, give flippers cash for home purchases and construction with about a year to repay, and are backed by the real estate. They represent an opportunity of about $30 billion in origination annually, according to LendingHome, an online mortgage marketplace that makes short-term loans and sells them to investment firms such as Colony.

Blackstone, the world’s biggest alternative-asset manager, is seeking to make $1 billion of the loans a year, according to Nick Gould, executive chairman of the firm’s B2R Finance unit. B2R, started in 2013 to lend to landlords, earlier this year acquired Dwell Finance, which provides “fix and flip” funding.

Record Profits

Arizona Home flippers are benefiting from rising prices, limited new construction and a shortage of inventory on the market. While quick resales have decreased from the start of the housing market’s rebound, when investors snapped up discounted distressed homes, profits are getting bigger.

The average gross profit for completed flips in the first quarter was $72,450, up from $61,684 a year earlier and the highest in records dating to 2011, according to a report Thursday from RealtyTrac, a real estate data firm. Markets with the highest average gross return on investment included Baltimore, central Florida and Detroit.

Fix-and-flip investors have generally gotten funding from local private lenders as banks have shown reluctance to extend credit for speculative real estate deals. Borrowers are forced to pay high costs in exchange for the quick cash.

Falling Rates Private Hard Money

Since big investment firms have entered the industry, rates have already come down significantly and fees charged to borrowers, known as points, have decreased as well, according to Fred Lewis, founder of Dominion Group, a Baltimore-based real estate firm that has been lending to house flippers for about 14 years.

“Rates historically were much higher, typically 15 percent with three to five points,” Lewis said. “In the last few months we’ve seen deals being done at 10 percent and two points.”

The new lenders are focused on more experienced investors, many of whom have have established companies, rather than the amateurs that proliferated during the housing boom a decade ago. Today’s flippers are more sophisticated after the crash weeded out most of the weaker investors, Lewis said.

“These are ideal clients, with the potential to be repeat borrowers across a number of product lines,” said Randy Reiff, chief executive officer of Cerberus’s FirstKey Lending.

Resource Intensive

FirstKey started offering fix-and-flip loans about six months ago and is just beginning to expand the business. Interest rates generally range from 9 percent to 12 percent for 12-month terms. Borrowers often sell their homes and repay loans earlier, said Reiff, which means it takes a lot of effort to rapidly expand the business.

“It’s resource intensive, and it’s important to have an adequate infrastructure,” he said. “If the regional guys do $50 million of product a year, they could be a major player in their markets. For the larger institutions, that barely moves the needle.”

The hard-money market is getting crowded, which may lead companies to loosen their standards, said Mark Filler, CEO of Jordan Capital Finance, a lender acquired by credit investor Garrison Investment Group about six months ago. His business has more than 300 approved borrowers with credit lines.

“Everybody just jumped in,” said Filler. “The risk is people start to relax underwriting guidelines to chase loans. As this becomes more competitive, there will be more pressure to do that.”

Added Service

A regional company such as Dominion competes on service when it can’t offer rates as low as Colony or Dwell Finance, Lewis said.

“We’re closer to the ground so we can lend higher loan-to-value for Arizona Home Loans and lend it faster,” he said. “If someone calls on Monday, they can be preapproved and funded on Friday. Institutional guys can’t do that.”

Borrowers such as Alex Sifakis, president of Jacksonville, Florida-based JWB Real Estate Capital, are willing to pay more for greater leverage. His firm buys about 40 homes a month and sells half, keeping the rest for rentals.

Dominion gives JWB 90 percent of the home’s purchase price and 100 percent of rehab costs, he said. That compares with 85 percent of both purchases and renovation it gets from lines of credit with institutional lenders, including Genesis Capital, which comes at 9 percent interest rates and two points. Los Angeles-based Oaktree Capital Group LLC invested $100 million in Genesis in January 2014.

“It’s a great thing to have more and cheaper money in the space,” Sifakis said. “It will cause some of these guys charging 14 percent and 4 points to lose a lot of business.”

‘National Platform’

Blackstone’s B2R is focusing on more established borrowers like Sifakis, to whom they extend loans that look more like lines of credit that average $1 million and go to as high as $100 million, with assets cross-collateralized. Rates are as low as 8 percent and one point. The firm also built a technology platform to make the application process faster.

“This is a sizeable and timely opportunity to institutionalize and consolidate an asset class that’s always been a localized business,” B2R’s Gould said at a real estate conference in Miami last month. “There hasn’t been a national platform that has the capacity 

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Things to Consider When Selecting Arizona bad credit mortgage lender

If you have bad credit, you will most likely find yourself unable to secure financing for a home mortgage through a bank. Most likely you will need to find an alternative Arizona bad credit mortgage lenders that specialize in bad credit and subprime home loans. All bad credit lenders are not created equal and it is important to select carefully to get the best deal.

If you have bad credit, finding a loan from a traditional bank can be difficult. Intense regulations by the federal government combined with over-cautious banks has led to the 2010 Dodd-Frank Act and a host of new rules regulating the mortgage market. In addition to new regulations, banks are still hurting from the housing crash of the mid-2000s. Not only were there losses from foreclosure, but also serious and founded allegations that banks knowingly sold bad subprime loans to investors as well as giving out loans to very risky borrowers. Several major banks had to pay out billions of dollars to settle cases of financial fraud during the financial crisis. These factors have led to banks to resist efforts to open up lending to borrowers with bad credit.

This lack of bank financing for borrowers with bad credit has led to new dynamic in the housing market that makes it almost impossible for borrowers with a low FICO score to obtain a home mortgage. However, a home mortgage is one of the best ways to help rebuild a credit history. Also, nearly one quarter of Americans have a “poor” credit score, meaning it is below 620. The restrictive lending climate has made it almost impossible for approximately 25% of Americans to secure a home loan.

The void in subprime lending from large banks has been filled by a number of Arizona bad credit mortgage lenders that are comprised of hedge funds, private-equity firms, and foreign banks. These investors are quite literally spending billions of dollars to help fill the subprime lending void. But not all of these firms are there to help. It is important to consider a number of factors when selecting Arizona bad credit mortgage lenders.

How to Evaluate Arizona bad credit mortgage lenders
 

When you are looking for a bad credit lender in Arizona, it is essential that you do your homework to find a legitimate, legal lender. A few things to consider when selecting your private lender:

• Where is the firm based? This is especially important because different states have different real estate laws and licensing requirements. Ideally, you want a lender that is based in your state to ensure that they know the ins and outs of law pertaining to local real estate transactions.
• Where is the funding coming from? If it is a foreign investment company or bank, you need to also do some further research on how stable the money source is. In addition, depending on what foreign bank the money that is funding your loan comes from, it may go towards causes or organizations that are against your beliefs. You may also want to think about how likely it is that the firm will sell your loan to an investor or investment group. Although a sold loan is not inherently negative, it is possible that your loan could be sold to a less stable third party.
• Who is in charge of the firm? The firm should be headed by a licensed broker who is knowledgeable about state and federal mortgage laws.
• Do I like the agent I am working with? This may seem trivial but it is ultimately a very important question to ask yourself. You will need to work with your loan agent very closely and trust his judgement and character. It is important that you can trust him and that he is honest with you.

Finding a lender you can trust is key to making your home ownership dreams come true.

Talk with a financial professional, mortgage broker, or real estate agent to learn more about various Arizona bad credit mortgage lenders. A good recommendation combined with thorough research can help you find the best lender for you and your family.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

How to buy a house with bad credit in Arizona

How to buy a house with bad credit in Arizona: Analyzing the Risks and Benefits of a Sub-Prime Loan

Sub-prime lending and loan types that have been blamed for triggering the housing collapse in the mid-2000s. However, with more and more borrowers wondering how to buy a house with bad credit in Arizona, these loans are making a comeback. Many experts are wondering if tougher regulations can keep them safer.

Borrowers with bad credit or even credit blips are often turned down for home mortgages by traditional banks. Some bad credit borrowers have been thwarted for years by banks that have virtually shut down mortgage lending after the financial melt-down and housing crisis in the mid-2000s. A growing number of these individuals that are deemed “too risky” or credit impaired by traditional banks are asking questions like how to buy a house with bad credit in Arizona. With the right lending company, many are finding that this is not an impossible task.

New sub-prime loan products are hitting the market almost daily and helping to answer the question of how to buy a house with bad credit in Arizona. Unlike some of the more risky loans given out by banks in the early 2000s, the new sub-prime loans are more heavily regulated and require more documentation. They require down payments as well as documentation that the borrower can make monthly payments. In addition, some reformed sub-prime loans are backed by the government and may even have lower interest rates (at least initially) that traditional mortgage options.

There are several types of sub-prime loans including adjustable rate mortgages, hard money loans, FHA loans, and a number of other private loans offered by equity firms and private investors. If you are in the market for a sub-prime loan, it is important to know exactly what the terms of your loan are and to be smart about the type of loan that you choose.

Danger, Beware, Danger – Avoiding Risky Arizona Mortgage Lenders

If you are in the process of navigating the sub-prime mortgage market, make sure to find a mortgage broker or lending firm that has a good reputation. Foreign and domestic investors are pouring billions of dollars into the sub-prime lending market. While there are many, many reputable private equity firms, there are others that will take advantage of the desperation of a borrower with bad credit.

When you investigate a lending firm, make sure that they operate under a valid broker’s license and are qualified to offer the loan products they sell. This is especially important if you are working with a foreign investment firm or a private equity firm. When they are helping you figure out how to buy a house with bad credit in Arizona, the firm should discuss more than just the interest rate with you. You should also know what your loan is called, the exact terms of you loan, the interest rate, and your estimated monthly payments including interest, taxes, and insurance. You should also be asked for some proof of income to insure that you are able to make your monthly payments. If you have bad credit, you will most likely pay more for the loan in terms of interest, generally about 6 to 9 percent but the rate should not be near the usurious loans prior to 2008, when rates often exceeded 15%.

Once you are offered a loan product, you should sit down and really look at your monthly budget. Think about if you will be able to make the monthly payment. If the answer is yes, then you should also consider your long term goals as well as your credit history. If you have bad credit, it is important to think about if this will change. On time mortgage payments are a great way to rebuild your credit and you may be able to refinance to a lower interest rate in the future. Also, consider if the home you are buying will be a short or long term investment and estimate and profit you may make, after the higher interest rate is taken into account. Your broker should be able to give you detailed fee sheets with different financial, down-payment, and interest rate options so you can see all the numbers in black and white.

Stop wondering how to buy a house with bad credit in 

Arizona and start making your dreams come true.

Although it is important to make sure you know what you are getting into with a bad credit home loan, it should not scare you away from purchasing a home. Many Arizona Home Loan lenders and equity firms are there to lend a helping hand to purchase your dream home. Making sure you are aware of all the financial ramifications will help you make the right decision for you and your family. Contact an Arizona mortgage broker or equity firm to get started today. Their licensed mortgage professionals can help you analyze the risks and benefits of sub-prime loans and choose the right product for your home purchase.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

You Can’t Have That Arizona Home Loan ! Mom Said No.

You want that Arizona Home Loan to Purchase your Dream Home, But...

I've got an interesting job.  All day long I listen to people’s stories as to why their credit score is down in the low 400 ranges and they want an Arizona Home Loan.  They call and I listen to a point.  It’s usually not their fault as to what happened.  They had a loss of job, had to move, got a divorce, company went out of business, house was upside down,  the mortgage company did an illegal foreclosure (whatever this means) and they end up saying ‘it was not my fault that I am now at a 424 FICO’.  I listen and listen and emphasize with them and say as you know it’s not something that you could have avoided.  It’s really not your fault.  However, being in this business for years I've come to some striking conclusions; they are:

1. The credit score is the King when it comes to a loan approval.  If you’re down at 505, the Mortgage Companies, FHA, VA, USDA really don’t care to listen to your story.  It’s a fact on your credit report and it’s not going away.  Even though some lenders will take a hardship letter of explanation for an Arizona Home Loan this usually does not work.  When you get down to the Nitty Gritty, they don’t care and your mom does not work there.
2. It really was your fault.  You should have had a plan or found a second job, or had sufficient cash reserves to handle the bump in the road.  It’s your fault when you did not pay for the mortgage and the bank foreclosed on you and kicked you out.  When you don’t pay it’s your fault. 
3. When the borrower is told NO, that they will not qualify for that Arizona Home Loan, this news is not new news for them.  They already know the answer

You Can’t Have That Arizona Home Loan ! Mom Said No.

People want to focus in on the problem and not the solution.  They will tell you about their problems in the past and how it’s ruined their life and they will talk to anyone who will listen to them.  They want to say the same thing over and over again, ending the story with ‘It’s not my fault’. And mostly they say ‘it’s not fair.  Why can’t I have this new home?  It’s not fair.  But I want it; I want it, why can’t I have it? I want it. It’s not my fault. It’s not fair’.  You get the picture; they go on and on and on.

So what is the solution for this borrower to 

get the Arizona Home Loan?  

First they need to find the person whose fault it is that put them in this bad situation, track them down and confront that despicable, mean, awful person for putting them in this horribly unfair situation.  They usually can find that person by looking into the mirror.

Second they need to focus on the solution not the problem.  The problem is in the past and you can’t back it up and do a re-do.  I don’t hear a universal backup BEEP BEEP BEEP.  So let’s not linger on the problem, but the solution.  Ask yourself how are you going to solve the problem of a 505 credit score?  When you focus on the solution the problem goes away.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Arizona Home Loans for Bad Credit Borrowers: Hard Money Loans

If you have a low credit score, you may think that investing in real estate is impossible. However, Arizona home loans for bad credit and even qualify for loan programs designed specifically for real estate investors. there are a variety of programs geared towards real estate investing and it is possible to find

If you have bad credit, it probably feels like you will never get ahead. You are stuck in what feels like an endless cycle of work and debt. Working to pay down debts but never making enough to do it completely. You may even be stuck in a dead end job that you hate. With the average American spending nearly 33% of their time at work, it is far too time consuming to be doing something you hate. But if you have bad credit, you may not have time to job hunt as you are too busy trying to make ends meet.

One way many successful Americans have broken out of the daily grind is to work from home doing full time real estate investing. However, if you have bad credit, it may seem like this dream is beyond your reach. It is not. There are different Arizona home loans for bad credit programs that can help you qualify to purchase investment properties.

Arizona Hard Money Loans

For many people with bad credit, they assume that real estate investing is out of their reach because a bank will not lend them money for a mortgage. An Arizona hard money loan is a type of loan that is designed specifically for real estate investments. It is backed by an investor or group of investors instead of a bank. The loan is for a short period of time, usually a few months to about 4 years. The goal of the loan is a true investment, for everyone involved to make money.

Since a hard money loan is backed by investors, they are more likely to give loans to individuals with bad credit. Instead of only looking at numbers, the investors look at the potential for the property to make money and don’t focus solely on the credit score of the borrower. Once the borrower has renovated the property and sells it, the investors make back their money plus a certain amount of interest. The borrower also makes money on the investment so it is a win/win situation. One thing to be aware of is that hard money loans are short term loans. Usually the loan is only for about 24 months but some companies will offer longer terms. In addition, you will pay a higher interest rate because you represent a greater risk to the investors.

In order to obtain a hard money loan, you need to work with a mortgage broker or private investment firm. You would determine a property that you wish to purchase that is a sound investment. Typically these are fix and flip type houses that can build equity quickly. Once you have a property in mind, your broker will connect with a hard money investor or investment team. The investors will examine the merit of the property and the money making potential. They will use this information to determine whether or not they want to invest their capital. With many hard money lending companies, you can get fast approval.

If a hard money loan sounds like a good investment for you, talk with a mortgage broker. A hard money loan is a special type of Arizona home loans with bad credit in that it allows individuals with bad credit to make real estate investments. These investments can have high returns and have great money making potential. If you have bad credit but want to invest in real estate, a hard money loan might be a good option for you. Talk with a mortgage broker today to help you secure your loan and begin your real estate investing journey.

A hard money loan can be the perfect option to help your work from home and make more money.

Once you have chosen a property and secured a hard money loan, you can work on renovations or selling at your own pace. You get to be your own boss. You will also earn money once you sell the property and the sum you make will most likely be more than you make at a low level job. You can use the extra income to help pay off debt and get your credit back on track. In addition, a hard money loan is a great Arizona home loan with bad credit option to help you rebuild your credit history.

A hard money loan is a win-win situation. You get extra money and the potential to start your own business of sorts, making your own schedule and being your own boss. Talk with a broker, investor, or other financial professional to start investing with hard money loans.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027

Arizona Home Loans with Bad Credit

Arizona Home Loans with Bad Credit: Using Arizona Mortgage Brokers and Investment Companies to Help Make your Dreams Come True

If you have bad credit, it may seem impossible to qualify for Arizona home loans with bad credit. However, there are brokers and investment companies that are there when you need them and can help you find a loan type to purchase your dream home.

Having bad credit can make you feel isolated and alone. According to many surveys Americans with bad credit suffer from depression and feelings of hopelessness. These feelings are usually made worse by way you are treated by financial institutions if you have bad credit. You will probably be turned down for credit cards, auto loans, and may not even be able to get certain jobs.  If you are looking for Arizona home loans with bad credit you will most likely be denied by traditional banks. It may seem like owning a home is impossible. However, if you find the right type of lender, finding a home loan, even with bad credit is possible.

Types of Lenders That Are Here to Help When You Have Rotten Credit

One type of lender is a bank. A bank is the most common type of lending institution and usually what borrowers think of first. Banks offer many different loan types including FHA loans, adjustable rate mortgages, and traditional 15 and 30 year fixed mortgages. The bank sets its interest rates based on market conditions, government regulations, and other factors. There is one interest rate to choose from, the one offered by the bank you are obtaining the loan from. The bank will not shop around to find better interest rates, what they offer is what you get. Often this can mean that you end up paying a higher interest rate than if you used a different type of lender. A second downfall of bank mortgage loan is that they are often not a good option for bad credit borrowers. Banks tend to shy away from any investment they deem too “risky” and will often define borrowers in terms of their FICO score, without assessing other factors. This makes them a not an ideal institution in terms of find Arizona home loans with bad credit. 

Another type of lender a borrower can look to for a home loan is a mortgage broker. A mortgage broker in an individual or company that specializes in home loans. Like a bank, you can get multiple loan types but, a mortgage broker is not locked into one interest rate or one lender. The broker or broker company will basically shop loans for the borrower to find the best interest rate and loan terms based on current market conditions. In addition, a mortgage broker can find loans that banks may not be able to give because the borrower or loan type is too “risky” for a traditional lending institution. This makes a mortgage broker a better choice for borrowers with bad credit.

A final type of lender that most borrowers don’t even know exists is a private lender firm. These private investment firms are run by a licensed broker who is up to date on mortgage and real estate laws, programs, and terms. The loans are funded by private investors rather than a bank. As a group of private investors, these types of lenders are more likely to look at the merit of the property as well as the potential to make money as compared to exclusively the credit score of the borrower. This makes them a good option for borrowers with bad credit. In addition, private investment firms usually offer different types of loans than you can find at a bank or even with a mortgage broker. However, it is important to make sure that you are working with a legitimate financial institution that is operated under a broker license. You can find private lending firms through a mortgage broker or other investment professional.

See the difference the right lender makes, call a broker today.

A broker can help you find the right loan and right investment company for your financial situation. Even if you have bad credit, there is a lender and a loan that is right for you. With the majority of Americans having a “fair” or “poor” credit rating, you are in good company. Talk with a financial professional about Arizona home loan with bad credit. Don’t put your dreams on hold any longer.

Dennis Dahlberg
Broker/RI/CEO/MLO

Level 4 Funding LLC
Tel:  (623) 582-4444 | Fax: (888) 279-6917
www.Level4Funding.com

NMLS 1057378 | AZMB 0923961 | MLO 1057378
23335 N 18th Drive Suite 120
Phoenix AZ 85027