The Difference between Hard Money and Private Money Loans

There is no difference! Hard money and private money loans are interchangeable terms that reference real estate loans with private investors as the lender, instead of institutional banks. You can potentially get a hard / private money loan when you are unable to obtain institutional / conventional financing. Possible reasons to get private money include:…

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When a 3rd Mortgage Hard Money Loan Makes Sense

When to obtain a 3rd mortgage hard money loan, it is vital to first understand its meaning. This type of mortgage is a lien on a property that goes subsequent / behind the current 1st mortgage and 2nd mortgage / heloc. A third mortgage may benefit you if you already have a 1st conventional mortgage…

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Top 3 Mistakes When Applying for a Hard Money Loan

Applying for a hard money loan, especially for first-time borrowers, can be stressful and overwhelming. To help avoid possible errors, we’ve made a list of the top 3 mistakes: 1. No exit strategy Lenders want to know how you plan to repay the loan. Examples of exit strategies include: seasoned income, rental income, sell the…

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Top 3 Benefits of Owner Occupied Hard Money Loans 

Both Consumer and Business Purpose Loans are Available Owner occupied hard money loans to purchase or refinance is a niche loan program not offered by all lenders. The benefit is that you now have access to money even though you can’t qualify through a bank or institutional lender. Owner occupied is when the borrower resides…

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Why Do Top Brokers Work With Marquee Funding Group?

We Always Protect Broker Referrals There are a few reasons why several of the top mortgage brokers in the United States refer their “outside-the-box” hard money loans to Marquee. If you are a mortgage broker and need to find a direct hard money lender with over a century of combined experience, you’re in the right…

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How Hard Money Lenders Qualify Self-Employed Borrowers 

Applying for a Conventional Mortgage  To purchase or refinance, self-employed borrowers might have an issue qualifying.  Lenders are required to document the borrower’s ability to repay through a formula called DTI ratio (debt-to-income). There are two forms of DTI: front-end and back-end. Front-end DTI equals PITI (principal, interest, taxes, and insurance) divided by gross monthly income. Back-end DTI equals PITI plus…

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How to Fix Your Credit with a Hard Money Loan

Perhaps you’re probably wondering “Why would I get a hard money/private money loan to payoff other debt such as credit cards, personal loans, medical bills, tax liens, or judgements”? The reason is because hard money loans typically offer lower interest rates and can help increase your credit score. The debts listed above often have interest…

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What’s the Truth about Stated Income Loans?

A stated income loan is when a borrower does not provide income documentation such as bank statements, tax returns, or W2’s. Rather, the borrower simply states their income on the loan application. After the government passed Dodd-Frank in 2010, stated income loans are only permitted for business purpose loans, not consumer loans. As explained in previous blogs, a business purpose loan is business related, including…

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When a 2nd Mortgage Hard Money Loan Makes Sense

A borrower might need to access additional equity when they already have a 1st mortgage. A mortgage that goes subsequent / falls behind the 1st mortgage is called a 2nd mortgage. Marquee Funding Group offers 2nd mortgage hard money / private money loans for owner occupied and non-owner occupied properties. Property types include: single family…

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3 Biggest Misconceptions about Hard Money Loans

1.     Only business purpose loans are available Most hard money / private money lenders only offer business purpose loans. A business purpose loan is when a borrower uses the loan proceeds for investment purposes, such as purchasing an investment property or pulling out equity to invest in their business. On the other hand, a consumer…

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