It is currently very hard to get a loan right now even though rates are historically low because of the coronavirus. Normally over the last decade, getting a loan was a very easy process. However, now it is very difficult to get a loan and the only real options you have is getting a loan from someone you know, or from a balance sheet lender. Banks are not giving out loans right now because most people have been negatively impacted in terms of income and employment due to coronavirus. They have less money and less security and that makes lending much more risky for a bank.
Key Takeaways:
- Over the last decade, it has been very easy to get a loan but now it is much more difficult due to the coronavirus’ effect on the US economy.
- Certain banks are still lending money but you have to figure out if they are a balance sheet lender. If they are, you have a better chance at getting a loan.
- Since income is down for most of the country and employment is very volatile right now, lenders simply can’t take the risk in lending out large sums of money right now.
“As the market goes up, property values increase, and the ability to get a loan generally becomes easier.”
Read more: https://www.biggerpockets.com/blog/rates-are-at-historic-lows-so-why-is-so-hard-to-get-a-loan
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