Whether you are looking for a new home, want to renovate your current home, or perhaps it is the first time you are buying your own place, this is the second-best time in history to get a loan to buy a house. 30 years ago, would have been the best time to buy a house. When you go to a bank to get a loan, the bank will give you what is known as a mortgage and assuming you make every monthly payment, in 30 years you will own your own home. There is a better way.
Use Private Money for a Loan to Buy a House
Say you have $50,000 for a down payment (DP). So, based on that figure and your $3500 monthly income, you plan to buy a $250,000 home in the Houston, TX area. Perhaps you are looking in Sugar Land, Pearland, or the Woodlands since you have heard these are nice places to buy right now. Your mortgage will be around $1500, which should be no more than 28% of your income.
Some of the expenses the buyer is normally required to pay are inspections, appraisals, closing costs, PMI (though not normally required if you have a 20% DP), taxes and insurance. If you will buy a condo or home in a planned community Home Owner’s Association (HOA) fees, and repairs and improvements if you are buying a previously own place.
Buying a previously owned property could be an excellent method to get more home for the money because in today’s market, $250,000 will not get you as much as you would hope. With interest, you will have to pay back $339,601 on a 30-year loan, not including your $50,000 DP, which will make your $250,000 loan to buy a house, cost you nearly $400,000.
So, here’s the better way. Rather than begging the bank or a credit union for the money to buy a house, why don’t you first invest in a foreclosed property, fix it up, and resell it? No matter what your current profession is, you can bid on a foreclosed property, hire a crew to fix it up the way you want it, and flip it (or resell it for profit).
It may even be your old house that you renovate and resell for a nice profit, to purchase a new home if that is what you really want to do. You may even decide to keep the place you fixed up and just change the loan to a long-term mortgage at a much lower price.
Why Use a Private Loan?
It’s time to go visit a lender. A lender is a bank or private lender who is loaning you the money so that you can renovate that old barn and purchase that exquisite Mediterranean-style home or Texas ranch.
To get that mortgage loan from a bank or credit union, you will need near perfect credit. Your credit score will likely need to be well above 700.
Another consideration would be to ask Red Door Funding for a private loan. They do not care about your credit history because the house is the collateral. You can get a loan to buy a house, fix it up, and resell it for a huge profit using their money not your own. You can borrow up to the remodeled home’s appraised value. Therefore, you can take the $50,000 you would have used for your DP, bid on a fixer-upper, renovate it, and resell it.
After you finish remodeling and sell the house you will make a significant amount of money and can do the same thing again and again until you have the money to pay for that $250,000 home outright, rather than paying a loan to buy a house for 30-years.
Why Red Door Funding?
Red Door Funding at (832) 539-1099 will appraise the property you intend to renovate and lend you up to appraised value for renovations or whatever you need to spend that money on to improve the property for resale.
You can get a Red Door loan to buy a house or “fix and flip” project. Contact the professional lenders at Red Door Funding to get the cash you need without the hassles and high costs of banks and credit unions. Just complete the credit application here. Send an email with your questions, email@example.com.