Residential Private Money Loans In Oregon
Work With A Local Oregon Private Money Lending Specialist

Current conventional lending guidelines have become so strict, getting a conventional loan almost feels like climbing through the eye of a needle! Gone the way of the dinosaur are Alt-A and Sub-prime programs. That leaves only private money loans in Oregon as choice for many.

Private Lending is a GREAT tool for unusual properties, alternative cash flow situations, or if a loan just needs to be done in a hurry!

There are a few things to consider before getting a private money loan in Oregon.

First, you need to have tried all of the conventional options. Private lending is a powerful tool that can help many accomplish their goals. It is however it can be an expensive option. With few exceptions, the interest rates start around 9%. I am often asked why the rate is so high. Well, we have to compete with other investments to have access to the Oregon private lenders funds. If the rate gets too low, they will buy bonds or other investments with less perceived risk.

The loan fees are higher than conventional loans. You can expect to pay up to 5% of the loan amount in loan fees. That seems to be the industry standard and part of the reason for that is the time involved. If a loan officer does a conventional loan, when that loan closes, they are typically done with the transaction. With a private loan however, we are involved for the entire term of the loan, answering questions and problem solving.

You must have equity. Private lenders in Oregon have lost a lot of money in the past few years, as have all of us. Therefore, safety of principal is their first consideration. You will be hard pressed to find a Private Lender who will loan more than 60% of the property’s value.

One of the new challenges with residential private lending in Oregon is the borrower will now need to be fully qualified for the loan. This will include a check of income, credit and assets. Income to debt ratios will have to analyzed. No longer will it be legal under federal law to make a residential mortgage loan strictly on equity.

Although private loans in Oregon are less regulated than conventional lending, you will still be expected to show a lot of information to a potential lender. Be prepared to show the following: 

1. 2 years tax returns for both personal and business (if applicable).

2. W-2’s and current paystubs (if applicable).

3. A current financial statement, both personal and business.

4. A YTD profit and loss statement.

5. A YTD income statement.

6. Credit Report.

7. Business and personal bank statements.

8. Copies of all lease agreements on the subject propert

A private lender is also going to want to see a preliminary title report and a history of the property taxes, zoning and permits. An appraisal, including schedule of rents if applicable will also be required.