Virgin Money is the brainchild of Sir Richard Branson; most notable for his record label, no-contract cell phone plans, fleet of airplanes, real estate, and private islands. Virgin Money offers a unique program known as 'Social Loans' which allows friends and family to structure personal loans secured by promissory notes and assess appropriate interest according to state usury laws.
Virgin Money lets people arrange affordable loans with lower rates of interest than those offered through traditional lending sources. A variety of financing options are available to help borrowers obtain home mortgage loans, business loans, loans to pay off credit cards, finance a wedding, buy a car, obtain college tuition, and nearly anything else that would require a bank loan.
Virgin Money is a great option for property owners entering into seller carry back mortgages. Sellers establish a Virgin Money account by entering the amount of funds borrowed, loan terms, payment dates, and interest rate.
For a one-time fee of $99, Virgin Money creates a legally-binding promissory note and facilitates the payment process by transferring money from the borrower's bank account to the lender.
Virgin Money does not provide loans. Instead, they offer guidance and assistance to officially document informal loans. Virgin Money helps orchestrate personal loans between all parties involved to ensure everyone is in agreement and understands payment schedules and interest rates. Establishing an account and putting loan terms in writing can go a long way in preventing disputes and misunderstandings.
Virgin Money offers a variety of services including: title and escrow; creation of loan proposals, ACH payment transfers, lien management, and financial coaching between borrowers and lenders. Each service is provided at an additional fee over and above the basic $99 startup cost.
Virgin Money's Family Mortgage can be a good option when family members finance home mortgage loans. Family members can design home loans to suit their needs. However, private loans must adhere to federal and state lending protocol and appropriate interest must be charged according to IRS rules.
Once borrowers establish a Virgin Money account for mortgage loans, Virgin Money submits loan documents to the private money lender for approval. Upon approval, borrowers sign loan documents and submit them to Virgin Money who then files mortgage documents with the appropriate government agencies.
Virgin Money reports payments (or lack of payments) to PRBC; a credit reporting agency for individuals engaged in "nontraditional" lending. Similar to the major credit reporting bureaus of Experian, Trans Union, and Equifax, PRBC helps borrowers with insufficient credit build a credit rating and obtain credit reports to authenticate their credit history when private loans are used but not reported to conventional credit bureaus.
Anyone who provides or borrows funds through friends or family members, or enters into nontraditional loans should consider opening a Virgin Money account. This service allows borrowers and lenders the opportunity to obtain legal contracts, record payments, track outstanding balances, adhere to state usury laws, and structure personal loans according to the needs of the parties involved.
We invite you to learn more about the different types of creative financing options available to buy a house, start a business, consolidate debt, pay college tuition, and much more in our personal finance article library. New articles are published weekly, so take a moment to subscribe to our mailing list and learn new ways to make your money work for you!