Purchase - Money Commercial Hard Money Loans

Are you looking to finance the purchase of your home? Then you may have to consider a purchase money commercial hard money loan. A purchase money commercial hard money loan is money that is used to buy a home.

last updated Wednesday, May 17, 2023
#Commercial Hard Money Loans #Purchase Money Loans

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John Burson

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A purchase money mortgage is a commercial hard money loan where the buyer borrows money from the vendor to help fund the acquisition of a home. The borrower can obtain the purchase-money mortgage from a bank, a credit union, or a private funding source. If the borrower can get a portion of the fund, then the money borrowed from the vendor can be used to make up the difference.

To let the buying public know that they are ready to help finance the purchase of their homes, many sellers will market their property as a vendor- funded or as owner financed.

The purchase–money loan is different from commercial hard money loans because commercial hard money loans are granted based on the property's equity and not necessarily the borrower’s credit history.

Advantages of purchase- money loans

A seller that faces high competition may need to get creative to sell his or her house. There are several benefits of purchase-money loans for both the seller and the buyer.

• For the sellers, the purchase money loan is valuable because it can increase the number of individuals buying their house.
• The buyer may select from payment choices such as interest only, fixed rate paying back, less-than-interest, or even a balloon payment. Down payments are negotiable.

 
 
 

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