is it possible to get a private money loan on a primary residence ? I found someone willing to do this, but it seems too easy. No credit requirements, funding in 4 days to our account to fund the house? Higher interest rate of course, and we need to provide proof of insurance on the loan and pay that fee prior to funding. Is it really THAT simple?
Sure you could get a private loan on your primary, but I have to ask... Why?
While I don't know your situation, it seems that the (generally much) higher rates would be a major deterrent. The only advantage that I can see is the lack of a credit requirement, but if credit requirement is what is keeping you from getting a conventional or FHA mortgage then maybe it's not a good time for you to buy. Furthermore, it would probably be difficult to do better financially than simply renting something until your credit is repaired if a lack of good credit is the concern. I would suggest the New York Times buy vs. rent calculator to do that calculation.
it's credit. We've been renting for so long, and paying so much more than one who would own their property.
We have 6 children and just need to finally be settled- tired of moving so much and dumping down payment money on another rental.
So my entire post seems... legal? I just don't want shady business. Thanks for your reply!
does anyone know how it works to insure a loan I don't have yet?
Careful, @Tanai Burke . Obviously, you will need homeowners insurance on any property you buy. This would be purchased just prior to closing through a company like Farmers or State Farm. Anyone asking you to get "loan insurance" up front is scamming you. There is no such thing. Here's a related thread that might help you: Finding and Researching Private Lenders
While many hard/private money lenders can close quickly, and 4 days is not out of the ordinary for a business purpose loan such as for a flip, your loan will be a consumer loan. This means you will need a private lender with an NMLS registration, SAFE Act and Dodd-Frank compliance, and whatever else the state of PA requires for licensing and compliance. These lenders do exist but there are not many of them (i.e. of the bazillion private lenders I know out here, only 2 could legally do a consumer purpose loan like yours).
I'll note as well, that no credible lender will send money to your account. Funding will go through a title company.
Compliance with Dodd-Frank requires disclosures with waiting periods that far exceed 4 days. Just on it's face, you're being scammed.
Jeff, thanks for the reply. I won't contact this guy anymore, you've confirmed it a scam. Thanks so much!!
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