1) Your payment might be $200 to $500 more per month but you saved $50,000 to $100,000 in real money that you did not pay in taxes.
2) You only have to put down 10%. On a conventional loan you need to put down 20% to get the lowest rates and fees.
3) Because this is not a conventional mortgage you don’t have to pay PMI or Private Mortgage Insurance. PMI typically costs between 0.5% to 1% of the entire loan amount on an annual basis. This means that on a $100,000 loan you could be paying as much as $1,000 a year – or $83.33 per month and what it your loan was $500,000? Well that’s $83.33 x $416.65 per month x 12 = $5,000 a year YOU DON’T HAVE TO PAY.
4) You don’t have to deal with collecting the 50 documents the banks want to approve your loan. These loans are light doc which means they need very little from you to approve the loan.
In many cases your net payment would be about the same as what a bank would offer you.
These loans make a ton of sense for the entrepreneurial business owner.