There are a number of reasons that you can end up with bad credit but none of them should stop you from investing in real estate. If you have bad credit but want to purchase a real estate investment, there are hard money loans Texas financial experts recommend to help you make your dreams come true.
Bad credit can make you feel like a failure. Car loans, credit cards, and even some jobs can be out of your reach. You may have bad credit due to your own poor choices or from circumstances outside of your control. Whatever the reason, you are not alone. Nearly one quarter of all credit using Americans have what is considered a “poor” credit score and more than half fall into the “fair” rating.
While there are many Americans in the same bad credit boat, so to speak, banks are so far not loosening their FICO score requirements for home loans. This means that about 43% of Americans are effectively shut out of the housing market for any kind of traditional mortgage product. Home ownership may be the American dream, but it is far from the American reality.
If you have bad credit, you probably assume that real estate investing is beyond your means. However, if want to buy an investment property hard money loans Texas investors rely on can be there for you. A hard money loan is an asset based loan that is secured by the collateral in the property you purchase with the money. You get money quickly and can use it to buy an investment property like a fix and flip.
There are several advantages to hard money loans Texas investors take advantage of. Most notably, there are not FICO score requirements or debt to income ratios. The loan is given based on the merit of your investment. This makes them ideal for someone who may have a few credit bumps in the road. Secondly, you can get cash fast so you can purchase auction homes or foreclosures more easily.
Even though there are many benefits to hard money loans, Texas financial experts want you to be aware that there are risks. Namely, the loan carries a higher interest rate and is not meant as a long term financial solution. Hard money loans are short term, investment loans, not traditional mortgages. You represent a higher risk to the lender so you will pay more for the credit. Secondly, many real estate investments can lose money. Make sure you do your research and know what you are getting into before you commit to a loan.
Dennis Dahlberg Broker/RI/CEO/MLO
111 Congress Ave |Austin | Texas | 78701
Dennis has been married to his wonderful wife for 38 years. They have 2 beautiful daughters 4 amazing grandchildren. Dennis has been an Arizona resident for the past 32 years.