Investment Real Estate Loans Replace Stated Income Loans
Investment real estate loans are used by real estate investors to purchase distressed real estate assets, to buy and fix up rehab properties, or to refinance existing investment properties. Since stated income loans disappeared in 2008, investment real estate loans have been a good alternative for stated income borrowers who don’t claim a lot of income. Particularly for real estate investors who have sporadic income throughout the year, the disappearance of stated income loans has created a void that investment loans for real estate has filled.
In 2008, stated income loans disappeared. They were blamed for the havoc that was wreaked in the real estate bubble when unqualified borrowers were stating income high enough to support large real estate purchases. When the wheels fell off the cart in 2008, almost every U.S. bank stopped offering stated income loans altogether. The demand for investment real estate loans didn’t decrease after 2008, but instead it increased tremendously. With stated income loans fueling most investment purchases and refinances prior to the crisis, real estate investors needed an alternative to stated income loans. This is where investment real estate loans began to really take off.
Most investment real estate loans these days are coming from private money lenders, also known as hard money lenders or bridge lenders. In answer to the increase in demand after 2008, private money lenders have begun to offer a competitive investment real estate loan that meets the short-term needs of real estate investors. Although investment real estate loans may have higher interest rates than bank loans, the biggest advantage of these loans is that they fund quickly with not a lot of drama. This has helped real estate investors take advantage of fleeting opportunities in real estate where hundreds of eager buyers may be standing by to pounce. Because many banks cannot act as fast as a private money lender, investment real estate loans have become the top choice among real estate investors in recent years.
Until stated income loans come back under the loan programs offered by U.S. banks, real estate investors will continue to seek out investment real estate loans to replace them. Private money lenders, like us, can provide these types of loans so look no more. To learn more about our investment loans for real estate, click here: https://privatemoneyutah.com/loan-programs/