Private Money filling the Subprime VOID.

Mortgage and Lending with Franklin Loan Center

There is a growing segment of the lending spectrum that is filling a void left by the subprime departure.  The origin of the subprime market was for people who have less than perfect credit but can still afford to purchase a house for their primary or as an investment.  Well, our beautiful free market system never fails to provide where there is demand.  These buyers still exist.  Some may even have great credit but can't get a traditional loan because of the deductions they take on the taxes.  This is where Private Money Loans come into play.  These loans focus on different factors than FHA, or any Fannie Mae/ Freddie Mac Product, or at least they put a different emphasis on them.  They focus on 1) Loan to Value 2) Exit Strategy and 3) Ability to repay the loan.  FHA requires only 3.5% down payment, FNMA 20%.  Private Money wants 30% to 50%.  This barrier is huge for most buyers, that's why FHA and FNMA exist.  However for those clients that have the cash this is the best option sometimes because of timing, ability, or other factors. 


At Franklin Loan Center I can handle all your Mortgage Needs. From the savy investor to the first time homebuyer.  Give me a call today!