Hard Money-Mortgage Loan Houston-Texas

Houston-Texas. Refinancing mortgage from Hard money lender to a Fannie Mae Lender

This article is designed for those borrowers who currently have a hard money lender and now want to come out of hard money lender and switch their mortgage to a standard Fannie Mae or Freddie Mac backed lender.

Just to give a back drop. Borrowers go for hard money lender when their books are not in order. It is generally taken as short term measure for a period of year or two. The rates are double than what you have in the market. So if a Houston-Texas mortgage borrower would have qualified for a mortgage rate of let’s say 4.5% going by today’s market rate. The hard money lender would charge a rate of 10% or higher and what they capitalise on is the equity in the mortgage. So if the borrower has 50% to 60% equity in their home a hard money lender would be willing to help them.

If Houston-Texas mortgage borrower is looking to come out of hard money lender. Its a wise decision. They generally do not report mortgage to credit agencies hence when you pull the credit report of such borrowers, it’s not surprising to see that credit report is not reporting mortgage anywhere.

Hard money lenders do the mortgage very quickly because they hardly require any documents but when you are switching to a standard mortgage. Your loan will now be properly underwritten as per Fannie Mae and Freddie Mac guidelines. 

Two years of income details as reported on IRS. The income should be either stable or showing inclining trend is good. Cash asset reserve of small amount would be asked for to make sure that the borrower has some cash reserve to continue making payments in the event there is any contingency.

The mortgage would take 3 weeks to fund. Houston-Texas mortgage borrowers are looking at standard market rates now. That would be applicable. Credit score would be considered for rates for conventional loan. So it’s important that in all these years when the borrowers were with hard money lender they have taken time to put their documents in order before applying for refinancing.

Should the borrowers be looking for a mortgage expert to help them with their situation? You have come to the right place.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. 

Artical by Roger Shanker