Mortgage home loan answers
Learn about mortgage home loans and rates.
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when businesses started out, how did they get money to loan, like for mortgages?
Posted on November 17th, 2010 2 comments
beach_babe971 asked:
i seen people start their business years ago and they are very successful….but how do you start lending out 100,000′s to thousands of people for buying properties?im takling about “A” lenders. not sub prime lenders.
i know no one has millions and millions of dallors to lend out in california the average home is 500,000. so how do these businesses have 100,000 of customers. where does that money come from?
how do you get the money to have a mortgage company?
ReginaldRenting & Real Estate 100 People, Dallors, Money Loan, Money Mortgage, Money To Loan, Mortgage Company, Mortgages, Sub Prime Lenders2 responses to “when businesses started out, how did they get money to loan, like for mortgages?”
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Banks, Savings and Loans, and Credit Unions all get money from the federal reserve. They borrow money until they build up enough money and customers that they don’t need it. They are only allowed to loan out a certain percentage of the money they have, this is called a reserve requirement. Once the loan amount drops below that amount, then they are required to take a loan from Federal Reserve to cover the minimum.
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Thomas O November 17th, 2010 at 15:23
The lenders sell off the loans so they don’t tie up their funds for the long term. They make their money mostly from the transaction fees, not from collecting interest.
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crystal22939 November 17th, 2010 at 07:55