Your first and most obvious option is an Arizona Investment Property mortgage. This type of loan is the same thing as a regular mortgage, except that it is used to purchase an Arizona Investment Property. However, these loans come with very stringent borrower standards. Before applying for a conventional investment mortgage you should be able to meet the following criteria:
• Excellent credit: minimum score of 620 with the ideal range being between 700-800, if your current financial situation is less than ideal qualifying can be difficult if not impossible.
• A strong proof of income: In most cases lenders expect employment records going back two years which can be difficult if you are self- employed.
• An acceptable balance of debt and income: Don’t bother applying if your current debt payments exceed 36 percent of your current income. But you may want to invest in real estate as a way to get more income and pay down your current debts.
So if you don’t have excellent credit, have a steady income or if a lot of debt saddles you, what are your options?
You may be considering real estate investment as a viable option to help you with your current financial difficulties. Your present financial challenges will make it difficult if not impossible to qualify for a conventional investment loan. You may not have the steadiest income, but you may have substantial savings on hand. Still, because of this lack of steady income, you probably won’t qualify for a conventional loan. You may also be over-leveraged in terms of your primary mortgage or any other debts that you may owe. Again, a conventional lender will likely deny your application if this is your case.
Even though you may not qualify for a conventional investment mortgage, you still have financing options.
A hard money provider considers above all the tangible value of your Arizona Investment Property instead of your current financial situation. Even if your credit is less than ideal, you can still qualify in the case of hard money.
Any documentation a hard money provider will look at will be related to the property you aim to purchase, so in most cases, proof of income is not needed.
Even if you are over-leveraged, a hard money provider will consider the potential of the property you aim to purchase, rather than your current balance of debt and income.
So hard money gives options to those with less than perfect credit, those who are self-employed or for those whose outstanding debts make it difficult to qualify for a conventional investment mortgage.
A traditional investment mortgage should be the first type of financing you consider. But if you find yourself unable to qualify, hard money can allow you to get into the real-estate investment business.
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.