Mortgage & Commercial Lending News.

AMI Lenders is a Private Mortgage Investor company or Hard Money Lender who provides innovative solutions, personalized service and applies a proprietary, common sense approach to loan underwriting by looking beyond the numbers to determine the true value and risk of a borrower.  

There are different types of mortgages and the Consumer Financial Protection Bureau (hereafter CFPB) has made significant changes to the definitions and coverage within these two mortgage categories. First, it is important to understand who the CFPB is and why it was created. The CFPB is an agency of the United States Government responsible for consumer protection in the financial sector. The CFPB creation was authorized by the Dodd-Frank Wall Street Reform and Consumer Protection Act, whose passage in 2010 was a legislative response to the financial crisis of 2007-08 and the subsequent Great Recession. 

You may or may not have heard of this term before but a wraparound mortgage or “wrap” is a form of secondary financing for the purchase of real estate property.  The seller/lender extends to the buyer a junior mortgage which wraps around an existing mortgage,  typically the bank or the seller of the real property assumes the payment of the existing mortgage and provides the borrower with a new larger loan, usually at a higher interest rate.

Houston Hard Money loans are backed by the value of real property not by the credit worthiness of the borrower.  Since the property itself is used as the only protection against default by the borrower, the loans have a lower Loan to Value ratio (LTV) and carry higher interest rates compared to conventional commercial or residential loans.  These loans are often referred to as a short term loan or bridge loan. 

If you are a typical borrower looking for financing for your primary residence the first thought is to apply with your local bank or credit union. The interest rates are typically competitive and generally lower than private lenders. However, credit rating is a primary factor in the loan decision and you have to meet certain underwriting guidelines. If you don’t have good credit with easily documented income sources your loan application can be denied.

Hard Money loans are customized to borrowers' needs based on the fact that you have sufficient capital, generally around 20-30% down of the purchase price of the property and your ability to repay the loan.

Private money lenders or Hard Money lenders in Houston are quite different from bank loans. Below you will learn 10 reasons why Hard Money loans in Houston are here to stay:

Hard money loans, also known as a fast short term loans, are a mortgage alternative to a borrower who is possibly in a distressed financial situation or who has less than perfect credit which fails to meet bank criteria for funding.  This asset-based loan financing is secured by real property and loans are typically made by a company or individual from a private organization, also known as “Private Mortgage Investors”. 

In today’s market, it is fairly difficult to find a Hard Money lender in Houston to finance to a Foreign National or to a borrower with an Individual Tax Identification Number (ITIN).   A Foreign National is a citizen from another country who periodically visits the United States and is purchasing a property in which to reside during their stay.  Mortgage Investors Corporation or AMI Lenders’ Foreign National and ITIN loan programs, offer financing to any non-US citizen wanting to obtain a residential or commercial Hard Money loan in the Houston metropolitan area. 

AMI Lenders Inc. (a Houston based hard money lender for over 25 years) has successfully financed many homes known as “bridge loans”.

How to Buy a Residential Property:

When in the market for a new home or in the market for an investment property, one should do their own research. (An example of an investment property is buying homes to either “fix and flip” or “fix and rent”).

We’re a mortgage investment corporation and we’ve been financing homes and investment properties for over 25 years.

Because we’ve been a residential hard money lender for so many years, we pretty much know the proper due-diligence in selecting the right property at the right price.

My entire working career (over 5 decades) has been lending money. I’ve reviewed hundreds of thousands of loan applications and, as a commercial lender, I have loaned in excess of a billion dollars to individual and corporations.