SubPrime Lending will Affect You

Forget about all the negative press about "predatory practices" that have put some of the major subprime lenders out of business lately. There is much more to the picture! A subprime lender is one who lends money to high risk individuals.

Subprime lending is risky for both lenders and borrowers due to the combination of high interest rates, poor credit history, and adverse financial situations usually associated with subprime applicants. A subprime loan is offered at a rate higher than A-paper loans due to the increased risk. Subprime lending encompasses a variety of credit instruments, including subprime mortgages, subprime car loans, and subprime credit cards, among others. The term "subprime" refers to the credit status of the borrower (being less than ideal), not the interest rate on the loan itself.

The biggest players, including some large banks and insurance companies, are losing tremendous sums of money at the subprime game.

Over the past several months most major sub-prime lending companies, including the biggest and oldest in the business, experienced some difficulty in one way or another. Many have either struggled to keep their doors open or have actually decided to file for bankruptcy.

Funding America can help you ReFinance from your existing lender. We have an assortment of programs to help those that were "caught up" in the sub-prime lending market.

In todays market, many of these institutions had their investment ratings downgraded due to the industry's legal and political risks, not to mention the financial realities of doling out money to high risk borrowers, secured only by high risk, high loan-to-low-equity-value properties.

Funding America's strategies can offer the best and most creative deals in Real Estate.

Equity is Still King

Spending money to make money might make sense in the right business platform - but giving it away tends to spill red ink all over the place. Consolidation insubprime lending markets will likely make equity king again - forcing deal-makers to return to "practical solutions" for real estate financing options, and not always for sub-prime borrowers.

How This Affects You

Okay, it's time for Funding America to think of new ways to help these clients. Creative solutions for everyone. For many of you it will be a whole new educational process. Fortunately, you do not have to look far. I am a phone call away. And the time to get started is sooner rather than later.

Remember, every program is a different deal and I can always give you some basics so you'll have a complete understanding, and the ammunition, for counseling yourself in a less fluid environment.

What I am proposing is that you use one of the many alternative financing techniques, providing a broad range of options so you can complete transactions in a manner that is acceptable to you.

More Options

....Here are a handful of options you can choose from:

• Home Equity Programs
• Adjustable Rate Programs
• Fixed Rate Programs
• Pricing and Secondary Marketing
• Blended HELOAN
• Stand Alone HELOAN
• Fannie Mae Programs
• Freddie Mac Programs
• Using Land Contracts
• Converting existing notes to cash
• Structuring lease options

All of these deal-making strategies have been in use for a long time and are valid, viable and valuable mortgage techniquies.

Problem Solving

Professionals such as Realtors, attorneys, CPA's, and Mortgage Brokers have used these techniques reliably for years - knowing that they offer practical solutions for their clients.

Our programs were created for the intent of flexibility for each and every individual with a different financial or home equity circumstance. Funding America provides exceptional customer service at your convenience. Free consultation tips on an assortment of real estate programs.

For any questions, you can contact us here.

1.347.294.4200