Viewing entries tagged wholesalers buyer list Subscribe to feed

New Mortgage Promises, But Who Wants Bank Loans Anymore?

by blogger1
blogger1
Guest has not set their biography yet
User is currently offline
on Thursday, 23 October 2014
BestTransactionFunding

Regulators are promising an imminent easing of mortgage credit for home buyers, but does anyone really need, or want conventional bank loans anymore?

FHFA head Watt has declared a rapid easing in access to mortgage credit, through clarifying lending rules and liabilities, as well as putting pressure on lenders to make more home loans. However, is it a case of too little, too late?

Yes, tight underwriting has held many hopeful home buyers back from taking advantage of the best prices and rates in the market. However, after years of one major fraud and discrimination case after the next, and rising fees, with fewer services, many might not want to fuel new profits for their local banks simply out of principle.

Besides, new technology savvy lenders and social mortgage lending have quickly stepped in with new, and far more appealing solutions for borrowers. This is in addition to increased awareness of the advantages of inter-family lending and borrowing.

For real estate investors, a new wave of home buyers armed with higher LTV, and easier to close home loans might be welcome. It could be great for retail side profits. Retail home buyers ready to do their own rehabs can be highly profitable for flippers, or when wholesalers snag deals in builder closeouts and liquidations.

Overall these promises might make little difference to true wholesalers with established buyer lists, at least in the short term. End investors who will do rehabs and hold as rentals have plenty of other sources of capital today. In addition to cash on hand rental property investors have access to crowdfunding, partnerships, new buy to rent loans, streamlined working capital loans, and hard money.

For property wholesalers transactional funding is all they need to acquire all the deals they desire and turn them for fast profits.

Rate this blog entry
0 votes