Private lenders’ insurance or Lenders’ Mortgage Insurance (LMI) is an insurance plan that a lender (a bank, financial institution or individual) takes out to secure or insure the full payments of his amount if the borrower won’t be able to pay fully to the lender. It is important to note that Lenders’ Mortgage Insurance covers and benefits the lender, not the borrower.
LMI provides the facility to the borrowers, who don’t have a substantial deposit or down payment, to collect funds from the lenders. This is actually a plan which benefits both parties. The lenders are in confidence that their amount is secured and will be paid off by the borrower, no matter what. The borrower who doesn’t qualify for other financing options, being new in the business or for any other reasons, can collect funds against this from the private lenders.
A step ahead for your future
If you are retired, laid off, or planning to quit your job, then private lenders’ insurance plan can hold your back. You can fund your IRA amount against the LMI to get a monthly pay-out and security of getting the full payment in return. In this way, you can self-direct your IRA or private lenders’ insurance plan. The pay-outs or returns you will be getting would be tax-free.
National Wealth Builders is willing to assist you in this regard. It’s a simple and easy procedure, and we will do all the work on your behalf. Open an account with IRA and rollover funds from your custodian. You will be regulating and directing the funds until closing. When the house is sold, funds are sent directly to your assigned custodian. This is as simple as it.
Benefits of LMI
It is a source that provides the facility of availing more impending deals to the borrowers who have relatively higher-risk, low-income and low equity. The investors, who are confident enough for a deal to give a high-profit margin, opt for providing the facility of LMI to lenders to collect funds for the deal.
Lenders are secured and will get the full loan payment if the investor fails to make a profit out of the deal. If the mortgaged home is repossessed by the bank or govt. and is at the edge of foreclosure, then the lender won’t have to bear a financial loss.
Contact us for lending us the money. Our professional advisors will answer all your queries and then you can decide what you want to do.