Sun Pacific Mortgage & Real Estate | Hard Money Lender | Sonoma County, CA

Make the Winning Offer

 

Make the Winning Offer

Who doesn’t want to know how to beat out the other purchase contracts in today’s multiple offers and lower inventory markets, and buy that house!

There was a really good article in the Wall Street Journal recently about Hard Money loans.  It was informational to borrowers and investors alike.  It spoke of the fact that Hard Money loans will account for 1% of the 5.5 million home loans originated this year, up sharply from prior years.

It mentioned “Hard Money” filling an important void.  Look at just a few instances:

 

  1. You are 1 of 12 different offers with a highest-and-best counter, on a house you really want to live buy.  You have the ability to put down 30% of the purchase price and get pre-approved for a hard money loan with a quick call to a good local Hard Money Lender.  You remove loan contingencies, increase your earnest deposit and make a 15 day closing date and your offer gets accepted!  Now this is a scenario where you win and Hard Money can fund that loan!
  2. You just did a short sale on your home and want to buy another one.  Your favorite bank won’t even talk to you.  You know that prices are at rock bottom and you can buy the same home that you bought 5 years ago for $400,000 now priced at $250,000!  Hard Money can fund that loan!
  3. You lost your job and your credit is shot.  You now are back to work making the same money and you want to buy a house.  You’ve got 30% down.  No bank will touch you as your FICO score is 525.  Hard Money can fund that loan!

 

The Wall Street Journal article further states that the fees and rates are no doubt higher than a bank, but it is well worth it as “no bank is willing to listen.”

The real gist of this article is to not give up about buying a home; It just takes a strong and strategic offer to beat out all the others, despite not being the one with the most cash!

Even at Hard Money rates (some of which I’ve gotten funded as low as 9%)  its worth it because you’d be getting in at the bottom of the market and down the road could refinance to a 30-year fixed rate loan once qualified again.   Your gain from buying at the right time can offset the cost using Hard Money.

Take advantage of a Hard Money loan or help your potential Buyers succeed at getting into a new home by directing them to such versatile financing!