In contrast to banks, most private construction financing agencies will not usually scrutinize your income and tax returns. Instead, they will look at your credit score. Most private constuction loans, like ours, are often not even available for investor-owned properties. This means that if you own a home, you’ll most likely have to pay higher interest rates on your private loan than on a bank loan. But you may be able to qualify for private business or residential real estate loans based on your credit rating. To learn more about private loans for real estate investors, contact a professional private lending institution today.
Private lenders are usually more expensive than banks. If you’ve never applied for private funding before, it’s best to consult with at least three to ensure that you’re getting the right deal for your situation. Private lenders will often offer better interest rates, as well as a variety of terms. Be sure to read all fine print when applying for your new private financing options.
Private construction lending can be a great way to finance new commercial and residential projects, especially if you’re looking to obtain financing without putting your personal assets at risk. Before using a private lender, however, it is a good idea to familiarize yourself with the different types of real estate financing available. It will make the process go much smoother. Contact a professional private lending institution today to learn more about these types of loans.