A due-on-sale clause is a provision in a mortgage promissory note that stipulates the full balance of the loan may be called due (paid in full) upon sale or transfer (conveyance) of ownership (either full or partial) of the property used to secure the mortgage. This provision as also sometimes referred to as an “acceleration clause”. Mortgages with a due-on-sale clause are not assumable. This clause helps protect lenders against below-market interest rates. Due-on-Sale Clause A
Real Estate Investing
Underwriting Your Loans: A Guide for Private Lenders
Credit – Income – Assets (C.I.A) As a lender, you might be wondering what basics we look for with each client who is hoping to get pre-qualified. Below is a basic version to give you an idea of what we are looking for, and a handy acronym (CIA) to help you remember it: Credit (C) – The first part are your Credit Scores, which are and always will be important for home ownership and real estate investing. Every Lender will use the Middle Score for qualifying purposes, meaning whether the
Private Money Loan vs Hard Money Loan: Which One Should You Use?
Hard Money vs Private Money and How It Works Hello again fellowinvestors! With the explosion of the “Asset Based Lending,” there is so much built around the theory of using other people’s money to invest. This process can be applied to Fix and Flips or Buy and Holds. You will want to have your planned exit strategy in place prior to embarking on a specific property, or loan options. My team and I have come across many questions on the process of borrowing in these scenarios and what it
How to Get an EIN Number for Your Business
How To Apply For An EIN You have created your LLC, now what? Now it’s time to apply for an EIN. What is an EIN? EIN stands for Employer Identification Number and is a 9-digit number specifically used to determine identification. It is also used for tax purposes. How To Apply for an EIN? First, you’ll want to visit the IRS website for EINs. It is broken down into three easy steps: Determine Your EligibilityUnderstand The Online ApplicationSubmit Your Application Please
Foreclosures Explained: What You Need to Know
What is a foreclosure, specifically? What is foreclosure, specifically? In simple terms, the foreclosure process allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership of the property. Roughly 1 in 12,000 homes are in some phase of the foreclosure process, (default, auction or bank-owned)” in the United States, so it’s hardly an uncommon occurrence. “Foreclosure occurs when a lender seeks to seize your property as collateral for failure to pay
Quick Guide: Calculating Rental Income for Your Investment Property
How to Calculate Rental Income a Quick Guide Looking for an easy and accurate way to calculate rental income? The Blink Lending team here in Houston has you covered. Read on for the easiest way to calculate your rental income. Most real estate investors report their rental income on Schedule E of their 1040 US Individual Income Tax Return. As a mortgage lender we often have to determine the usable rental income for your properties. You may feel they are very profitable, but once
