Are you searching for an affordable and flexible residential or commercial property mortgage? A traditional lender like Silicon Valley Bank or SVB may not be the ideal place to start looking right now. Before explaining why a more stable private lender may be more appropriate for your situation, let’s examine what transpired with Silicon Valley and similar banks.
Recently, SVB suffered a rather unfortunate depositor run. Financial problems for the bank started when the market value of the government bonds it had invested in dropped after an interest rate hike. The same might happen to about 190 banks with a similar lending model, according to one study. Hence, it’s important to learn about other viable options for financing your property investment.
The Problem with Traditional Lenders
Borrowing from a traditional lender that is financially healthy always comes with strict eligibility rules. It’s no surprise that credit requirements get tighter when the same lender experiences liquidity problems, such as due to customers’ panic withdrawal of deposits. Understandably, envisioning such an unstable lender as your ideal real estate investment partner is often a tall order. It comes with risks such as:
- The collapse of the bank with customer deposits
- Unavailability of personalized mortgage loans
- Higher interest rates
- Strict credit requirements
Why Non-Conventional Providers Like Fidelity Mortgage Lenders are the Real Deal
When U.S. financial markets face turmoil, Fidelity Mortgage Lenders offer the level of stability you need as an investor or borrower. Not only do we provide commercial property and non-owner-occupied residential mortgages, but we also include viable investment options like trust deeds.
Here are reasons you can count on a private lender like us at all times when it comes to your investment property mortgage needs:
- Commitment to financial stability: Our unique approach to commercial mortgages has allowed us to consistently provide financing to clients since 1971. We have a solid reputation for satisfying the needs of a real estate market ignored for years by traditional lenders, including during bank collapses.
- Flexible criteria: Rigid or tight borrowing requirements have for years put off potentially successful real estate investors. Private lenders like us avoid this by softening the criteria for approval.
- Faster loan approval: Private mortgage lenders take an appreciably shorter time to review and approve an application that satisfies the relevant criteria. With their rather straightforward underwriting process, funds may be available in your account in one or two weeks. The fact that your credit isn’t a primary concern for most non-traditional mortgage lenders simplifies your path to acquiring your first investment property.
- Multiple alternative loan options: Credit issues amid financial turmoil in the banking sector can limit financing options for prospective real estate investors. However, private mortgage lenders include products that conventional banks won’t touch. Their lending models often allow for purchasing a new property, property refinances, and even short-term loans for the repair or upgrade of existing commercial properties.
Finance Your Investment Risk-Free with Fidelity Mortgage Lenders
A reliable mortgage provider is the one that finances your project even when your credit isn’t so stellar and during tough financial times. Contact us at Fidelity Mortgage Lenders for flexible financing on your next real estate purchase.