AWM Mortgage Loan

AWM MORTGAGE has changed into a leader in our industry. Were focused on serving the requirements of borrowers, real estate professionals and Loan Officers alike, once we are proud of providing innovative mortgage products using the highest caliber of customer support.Private mortgage loans are made by AWM MORTGAGE private lenders instead of traditional financing sources such as banks, lending institutions, or government agencies. They usually are short-term (6 months to 3 years) hard money or asset-based loans, and the decision to lend is based on the equity and value of the property being put up as collateral, not on the borrower`s credit.These loans are a source of funding for professional real estate investors who wish to acquire, rehabilitate, or cash out equity of income producing property, and those who otherwise would not qualify for conventional financing. Private mortgages also assist real estate investors who need immediate financing without the financial documentation required by traditional institutional financiers.Private mortgage loans are very secure because they represent a maximum of 65 percent to 70 percent of the appraised value of income producing property. On non-income producing property, a maximum of 55 percent loan to value is lent. Investors can expect to pay interest rates of 12 percent to 14 percent on first liens and 16 percent to 18 percent on second liens in this current low interest rate environment. Historically, first lien yield of six points over prime has been obtainable.

Many reasons exist, but all fall into four categories.
Speed of Closing. Conventional mortgages usually take between 45 days and 90 days to fund, since institutional lenders need to obtain an appraisal of the property`s value, perform a detailed examination of the borrower`s credit history, and thoroughly evaluate the borrower`s current financial status. On the other hand, private mortgage lenders usually can complete a transaction within seven to 10 days. Since the property itself is the main criteria used to determine loan eligibility, less information on the borrower is required, resulting in a much quicker approval process. The private mortgage lender is protected by lending at a significantly lower LTV ratio: 65 percent vs. 80 percent to 90 percent for institutional lenders. Further, the private mortgage lender can make a decision within 24 hours of receiving