In the financial crisis of 2007 and 2008, property values decreased, credit markets froze up and many real estate investors got into financial trouble.
On the one hand the financial crisis presented opportunity because there were many distressed properties available at fire-sale prices. On the other hand, the process of applying for a loan from traditional sources became so onerous and the requirements so strict that it was often impossible or impractical to get a loan on a distressed property. Analysts are saying that the bottom of the real estate market occurred in 2012 and the number of home sales and home values are have been increasing since then. Real estate investors see the resurgent opportunity and want to get back in the game but credit from traditional sources is still tight and their credit was likely damaged in the crisis, further damaging their chances of getting loans from traditional sources.
New Hampshire Private Lending (NHPL) solves this problem by offering private mortgage loans that overcome the real estate investor’s objections to traditional lenders’ strict requirements and cumbersome processes while putting in place streamlined processes that keep our investments safe. NHPL has been doing private lending since 2009.
NHPL’s professional team consists of the owner/manager, a title attorney and a certified public accountant, ensuring that NHPL mortgage loans are processed in the same professional manner as traditional mortgage lenders.
NH Private Lending makes mortgage loans wherein the proceeds of the loans are for non-consumer purposes only. This rule is employed to ensure that we are in compliance with New Hampshire’s SAFE act. The SAFE act was passed in the wake of the 2007/2008 sub-prime crisis and it regulates mortgage lending, but only in cases wherein the proceeds are used for “consumer purposes”. NH Private Lending limits its market to mortgage loans that do not fall under the aegis of the SAFE act in order to avoid the onerous regulation compliance requirements therein. NH Private Lending does not make loans against owner-occupied properties. In New Hampshire and many other states there is no licensing requirement for the type of mortgage lending that we do.