For many Americans, owning their own home is the ultimate dream. But especially among younger people, a “home” doesn’t necessarily mean a detached, single family house. Instead, many buyers are seeking apartment loans or loans to purchase condominiums or town homes.
The meaning of home loan has also been expanded in recent years. While banks and mortgage companies are still the primary source for borrowers seeking mortgages, nontraditional sources such as peer-to-peer lending, loan broker and other non bank lenders like LoanNow represent a potential source for apartment loans.
Apartment Loans from Banks
The process of applying for apartment loans from banks is similar to that of applying for a mortgage for a detached single-family house. Banks approve or deny applications for apartment loans based on the credit profile and FICO scores of prospective borrowers, just as they process applications for mortgages for single-family homes. Applicants seeking apartment loans should clean up their credit, paying special attention to reducing their debt-to-income ratio and eliminating past-due payments.
Apartment Loans from Peer-to-Peer Lenders
Peer-to-peer lenders harness the power of the Internet and social media to allow borrowers seeking apartment loans to make their cases to a semi-public audience. Prospective borrowers with especially compelling back stories – veterans, households with disabled family members or people recovering from catastrophic circumstances tend to generate both sympathy and dollars from prospective donors. On the other hand, borrowers who prize their privacy are often put off by the peer-to-peer model.
Apartment Loans from Loan Brokers
Apartment loans from loan brokers represent another phenomenon that largely depends on the power of the Internet. Loan brokers operate as intermediaries between prospective borrowers and a curated set of potential lenders which could be located anywhere in the country. Prospective borrowers with average or good credit often find that loan brokers are more flexible in their credit requirements than banks. On the other hand, loan brokers cannot duplicate the personal interaction between borrowers and local banks, especially in the initial stages of the process.
Apartment Loans from LoanNow
LoanNow also harnesses the power of the Internet by allowing borrowers to submit applications for apartment loans entirely online** and receive a response within 24 hours†. LoanNow also provides helpful representatives available by telephone and email. We look beyond FICO scores to consider your entire financial profile. If you’re researching apartment loans in your quest for the American dream, perhaps you should consider LoanNow. We could provide the key to getting you into a home of your own!