Faithful Home Lending & Development LLC

10/19/2022

The first step to a successful fix and flip — as well as any successful real estate deal — is researching everything about the market of the community you’re interested in doing a fix and flip to answering any questions you may have about the fix and flip process.

Investors need to:

-Know their local real estate market for a successful fix and flip

-Be able to recognize a good deal and project how much the property can sell for once renovated

-Be aware of how long houses typically sell for in the area to establish a timeline.

-Understand the renovating process, including the costs, local requirements for permits and zoning, how long a project will take, etc.

-Have a solid team by their side, such as a trusted contractor and a good real estate agent.

Part of this research includes — if you don’t have already — an overall business plan (including a marketing plan) that can keep record of your expectations and the costs as you go through the fix and flip process, that is also helpful for bookkeeping and taxes.

10/19/2022

Our faith lending program includes construction and real estate loans. We also offer refinancing options to help you!

10/19/2022

10/13/2022

The thought of buying a house can be overwhelming. Starting the home buying process with bad credit can make it seem nearly impossible to get a loan, but did you know there’s such a thing as a bad credit home loan? Your credit might not be as much of a roadblock as you think.

Most borrowers don’t know this, but many lenders don’t require a specific minimum credit score to buy a house.

The catch-22 is that a conventional mortgage lender is free to set their own requirements when it comes to your credit score. Although government-backed loans give mortgage lenders some peace of mind, they still have credit score requirements, even if they are usually much lower.

No two situations are the same, and outside of your actual score, lenders will also be looking at things like:
How much the borrower has available for a down payment

The borrower’s overall amount of debt
How much income the borrower earns
If the borrower has any debts in collections.

Cash is your best friend when you have bad credit and the more of it you have to use toward a down payment, the better. The reason for this is that your credit score might only qualify you for a certain mortgage loan amount. If you can cover the difference with cash, you can still afford the home you want.

Don’t forget, if you purchase a home with bad credit, you can always repair your credit and refinance your mortgage for much better loan terms later on.

10/13/2022

Freelancers, business owners, and other independent contractors are considered “self-employed.” Their income is determined by profit-and-loss statements, 1099s, and tax returns.

Fortunately, that won’t exclude you from getting a mortgage. It’s possible to get approved with self-employed income as long as you know what lenders are looking for.

Before calculating your income, a lender will make sure you’ve been in business, in a self-employed capacity, for at least two years.

How do you prove that? You can provide a copy of your business license, but lenders will also want to see two years of federal filed income taxes, signed and dated.

Lenders define a self-employed borrower as anyone who receives more than 25 percent of their income in non-salaried pay. This definition incorporates borrowers who work on commission or earn bonuses along with a regular salary.

Will your mortgage lender consider you self-employed? The answer is yes if:

-You’re a sole proprietor

- You own your own business

-You are a partner with at least 25% ownership in a business

-You receive more than 25% of your income in bonus or commission income

-You are a contract worker, even if you work for only one company

-You receive 1099 forms instead of W2s

-You pay self-employment tax payments

-The bulk of your income comes from dividends and interest

-You are primarily a landlord

-You receive royalties

Let’s be clear: Self-employed people can still get mortgage loans. But they may have to provide some extra income documentation compared to someone with two years worth of W2 forms from an employer.

10/13/2022

Whether you're a first-time home buyer or you've done this before, buying a home is a big deal. And with fixed and adjustable rate loans, jumbo loans, physician loans, and low down payment options, Faithful Home Lending & Development can help you find the right mortgage. I’ll walk you through the process, step-by-step—from figuring out what you can afford to how quickly we may be able to make it happen. Ready?

10/13/2022

Buying a house at below market value, fixing it up, and selling it is house flipping and it can be profitable.

Just how profitable depends on the situation and the experience of the house flipper. Some investors make as much as $100,000 or more and others make less than $20,000.

So what’s the average net profit for flipping a house?

Typically, the average investor makes $30,000 net profit on a house flip if all factors align.

What's Your Net Profit Margin?

Your net profit margin is basically the profit you make after the house has been sold and all the expenses in the home flipping process have been deducted. It includes the price to buy the home, the renovation costs and the cost to sell it.

As you can imagine, every investor’s profit margin will differ.

It doesn’t matter if you buy a house at ridiculously low prices, if it costs an arm and a leg to fix it up, it takes away from your profits.

By the same token, if you buy a home for a high price and it needs a lot of work to increase the market value, you could end up making a loss.

The key is to find a home in a good location with lots of potential for improvement.

09/30/2022

A hard money lender is an investor who makes loans secured by real estate, typically charging higher rates than banks but also making loans that banks would not make, funding more quickly than banks and/or requiring less documentation than banks.

Traditional loans can take as long as a month to clear, but hard money loans can be used almost immediately, which gives investors a clear advantage.

09/30/2022

The preapproval process is essentially a mortgage application. This means your lender or loan officer will want to take a comprehensive look at your finances. You should be prepared to provide information on the following:
-Proof of income
-Employment verification
-Proof of assets
-Credit history
-Identification
-Debt-to-income ratio (DTI)

Before starting the preapproval process, you'll want the necessary documentation to ensure the process goes smoothly. Here are a few items you should have on your mortgage preapproval checklist:
-W-2 statements
-Pay stubs
-Bank statements
-License
-Social Security number

09/28/2022

Interested in becoming a real estate investor but need money? Call or text me at 312-210-0056. I’m able to get you approved for funds through a private lender.

09/28/2022

312-210-0056 reach out anytime! I’m able to help approve investors get approved for a hard money loan ASAP.

For hundreds of years, buying real estate has been one of the best ways to accumulate wealth. Sure, we’ve seen real estate boom-and-bust cycles in recent decades, but over time, owning real estate has made thousands of people rich in every part of the United States.

Most twentysomethings spend a big percentage of their paycheck on weekend fun, pay their bills with the rest, and then have nothing left over to save or invest for many years. Ten or 15 years later, they’re still doing the same thing, and have nothing to show for all of those years of working. Pay yourself first, then pay your bills, and then you can use what’s left over for “fun.” Nothing left over? Cut your bills, or find a way to earn more money.

Purchase a home (** I will help you get approved for a loan! **), than either rent, rent-to-own, or just fix it! After your rehab, sell the house and use the profits to finance your next home, again looking for a distressed property with equity.

By continually flipping or renting the homes you live in, your net worth will probably hit the $1 million dollar mark within another 10–15 years and you can continue to get rich in real estate.