Helvetica Hard Money

Offer Transitional Loans until Subprime Market Returns

Subprime Lending Temporarily Out of Business

Many of the largest lenders are now forced to limit their lending to what they can keep or what they can sell to Fanie Mae and Freddie Mac, the government sponsored mortgage investors who buy only loans that fit their relatively conservative standards.  Many brokers have found their subprime submissions even though approved, are "dead at the final yard."  Innovative mortgage brokers have found alternative ways to finance their borrowers despite the subprime fallout.  Private money lenders offer an attractive subprime alternative without all the extra paperwork. 

Private Money Lenders May Offer Transitional Loans

While subprime lenders shut their doors, many deserving borrowers are scrambling to access cash from equity in their properties.  Borrowers with substantial equity in their real estate still have sources of capital.  A private money lender such as Helvetica is less concerned with the borrower's credit than with the protective equity in their property securing its loan.  Borrowers in need of a quick refinance to ...

• consolidate debt,
• payoff liens,
• bailout a bankruptcy,
• avoid a foreclosure,
• market a listed property or
• get cash to transition through a turbulent mortgage market

... still have opportunities with a private money lender.  Typically private money lenders will loan up to 65% of the quick sale value on a property and sometimes more in afinity areas i.e., those areas with historically high demand and that are less affected by cyclical swings in the economy.

Is Your Lender a Portfolio Lender or Mortgage Banker

Portfolio Lender vs. Mortgage Banker

Portfolio lenders raise money from private investors to fund loans.  Mortgage bankers fund loans using a warehouse line to ultimately sell to institutional investors.  A host of mortgage bankers have evolved over the past couple years as institutional appetite for riskier loan products has increased.  Mortgage bankers pricing and ability to fund loans are highly influenced by Wall Street's appetite or aversion to risk.  As a result, loans may stay in a pipeline for weeks and months while a mortgage banker adjusts to radical market swings.  This puts a brokers loan submissions at risk.  In contrast, portfolio lenders are less impacted by market swings and institutional investor appetite.  As long as portfolio lenders continue to offer their investors attractive risk adjusted returns, investment capital continues to be plentiful and as a result loan submissions continue to be funded quickly.  Portfolio lenders do not have to wait for institutional lenders to purchase loan pools to clear warehouse lines for future fundings. 

Ask your hard money lender whether they are a banker or portfolio lender.  Make sure your loan submissions are not stuck in a backlog because of recent market changes.