LENDER’S VIEWPOINT by Broker, Owner

THE PROPERTY

Home Loans, HARD MONEY AND The Dumpometer Scale

This aspect of buying a home examines the security for the loan. In most states, when you buy a home you pledge the property as collateral for the loan with a legal document called a deed of trust. They should actually call it a deed of no trust because if you do not pay your home loan and the lender forecloses, they take your home.

The lenders left in the mortgage market arena, let’s call them institutional lenders, the ones that are offering the 30 year mortgages at historic low rates, require a good property. But what does that mean?

You can figure that out by comparing homes you look at to one another on a scale that has, for example, a brand new home to the furthest right on the scale and the ugliest, smelliest, most rundown home you’ve ever seen or imagined, to the far left of the scale. We call that home a “dump” for lack of a better word, hence the Dumpometer Scale.

The 30 year fixed rate lenders will actually allow a home to be just a bit to the left of the perfect house on the far right. It can have some cosmetic things needed and a bit of what is referred to as “deferred maintenance”. But not too much. An FHA lender is about the same but anything that stands out in their appraisal may need to be repaired prior to close of escrow. These lenders will not allow you to buy a home that requires any major cash outlay. That’s because they are taking on buyers that are scraping to get the minimum down payment and would not have monies after their down payment and closing costs for repairs and/or upgrades.

Hard Money lenders allow every home on the Dumpometer Scale. I just made a home loan last month on one of these homes classified a “dump”. The roof was caved in, the well and septic had both failed, the foundation had crumbled away to almost nothing and blackberries were growing out of every exterior wall left standing. It was a perfect property for the buyers though, all their family is in proximity to the house. It was almost 2 acres for a very good value. Perfect Hard Money loan. By the way, these Buyers had perfect credit, great long term jobs, their own savings and family money to help make their dream home a reality. No 30 year fixed rate lender would touch that transaction because of the property. Once they are finished with all the renovations, they will refinance into a great 30 year fixed rate loan. Hard Money saved the day.

One final note here, these Buyers also made a very sound investment decision with this house. The sum total of the purchase price plus their costs to renovate will give them a home value that exceeds what they have into the property. Very smart and all made possible with Hard Money!

Hard money lenders generally require just 2 things: 1. Equity or a good down payment and 2. Ability to repay the loan.

A Hard Money broker will do this loan. There is equity and ability to repay. This handles the property aspect of a loan.

Sincerely,

Owner

Owner- the Guy in the White Hat – is a CA DRE Broker with more than 23 years of experience in real estate and lending. His phone number is (707) 523-2099. Email is Broker@sunpacmortgage.com. See website @ www.sunpacmortgage.com.

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LENDER’S VIEWPOINT

By Broker Tardibuonio

CREDIT

Home Loans and HARD MONEY

This aspect of qualifying for a home loan boils down to good credit versus bad credit.

The lenders left in the mortgage market arena, let’s call them institutional lenders, the ones that are offering the 30 year mortgages at historic low rates, require good credit (among other things).

Hard Money lenders allow bad credit. Institutional lenders will make you wait years after you have a bankruptcy, foreclosure or short sale before they will lend to you.

Hard money lenders will loan to you immediately after any of those events and even while you are going through them!

Same with recent credit problems including 30, 60, 90, 120 day lates, judgments and/or collection accounts. Institutional lenders hate these. Private money lenders can do a loan in spite of these.

Hard money lenders generally require just 2 things:

1. Equity or a good down payment and

2. Ability to repay the loan.

Look at the important role played by Hard Money: Guy has a free and clear property. He fell on some misfortune and his credit was damaged. He makes plenty of money and he has no house payment. He goes to his favorite bank where he’s been for 25 years. Loan denied due to bad credit. He calls a loan officer friend who works for a bigger bank who tells him he’s out of luck due to bad credit. Come see him in a couple of years.

This guy has a free and clear property and none of the institutional lenders will lend to him due to bad credit.

A Hard Money broker will do this loan! There is equity and ability to repay. This handles the credit aspect of a loan,

Owner- the Guy in the White Hat – is a CA DRE Broker with more than 23 years of experience in real estate and lending. His phone number is (707) 523-2099. Email is Broker@sunpacmortgage.com. See website @ www.sunpacmortg

Hi. My name is Owner and I am the proud Co-owner and Broker of Sun Pacific Mortgage & Real Estate since 1988 – established in Sonoma County, CA!

Thought I’d tell you a bit about myself as my kids have nagged at me to let people know my interesting life history up to now…they say it answers why I came to be a Broker, taking a sincere interest in helping others. So here I go:

I was born in 1957 in Irumagawa, Japan at the Johnson Air Force Base. I have 7 siblings – with 2 sets of twins – so I had my hands full helping out as the eldest!

As my father was in the Air Force, we travelled a lot. One can say I was a military brat until 1972 when my Dad retired at Williams Air Force Base outside of Chandler, Loan Originatorzona. We had moved back and forth, living in Illinois, Japan and finally settled down in Loan Originatorzona.

My Mother was a teacher at the Catholic Grade school I attended and she was my teacher through my 7^th and 8^th grades for English, art and music.

I graduated Chandler High School in 1975 and I lettered in football, wrestling and believe it or not, in Debate!

I also must mention my 7 proud years of newspaper delivery of “The Phoenix Gazette” and the Sunday morning paper “The Loan Originatorzona Republic” every single day! I was paperboy of the month several times out of hundreds of carriers and also paperboy of the year. Guess you could say I liked to excel at everything I put my mind to!

After College I went to Loan Originatorzona State University on a debate scholarship. Graduated with a Bachelor of Science Degree in Business and Public Administration in 1982 and also joined the national social fraternity Phi Sigma Kappa.

I moved to La Jolla, California and did first year’s law studies at Western State University College of Law where I met my lovely future spouse and co-owner, Lynn. We married in 1987 and chose to move to Santa Rosa, CA. in December of 1987 because they had a law school with a night program as well as how beautiful it was here.

Our daughter, Megan, was born January 30, 1989 and happily joined our family of Lynn’s two sons of her previous marriage: Broker 7 and Phillip 3.

We opened Sun Harbor Mortgage on January 11, 1988 which was a branch of a San Diego Mortgage company. Since we had a true personal desire to help others in this county with honest financial services, we bought them out in June 1990 and changed the name to Sun Pacific Mortgage which has since evolved in 2004 to Sun Pacific Mortgage & Real Estate as we offer both real estate and mortgage/lending services!

Throughout my tenure as the Broker, I worked diligently to deliver the best service to all our customers and received the prestigious Model-Of-Admin-Know-How Award from WISE International for 10 consecutive years, beginning in 1997.

I take pleasure in working hard to help others during the week and on weekends enjoy fishing, gardening and golf – as well as a variety of other activities including spending joyful time with my 1^st grandson, Braden, who was born July 2009.

Having helped literally thousands of customers, I continue to strive to deliver the most honest and friendly service to all Borrowers, Buyers, Agents, Brokers, Investors and other affiliates I am in contact with on a regular basis. I enjoy what I do and am sincerely happy to help in any way I can.

I look forward to doing the same for you!

Feel free to call me up at 707/523-2099 for a free consultation, ask any question you have about mortgages, lending or real estate, to refer a friend or family member in need of my services or to get help yourself!

My website is regularly updated with timely information, tips, articles and videos about the current market of real estate and lending so take a moment to check it out: https://www.sunpacificmortgage.com//. You can also sign up there to receive emails and videos with timely information about the real estate and mortgage and lending markets.

Sincerely,

Broker

LENDER’S VIEWPOINT

By Owner

There are several types of loans you can use to purchase or refinance. This applies whether you are buying a home to live in, a home to rent out, or a commercial building. They include the standard 30 year fixed rate mortgage, the government FHA/VA loans, a commercial property SBA loan, or a Private Money loan.

Private Money is borrowed from private individuals. I bet you’ve borrowed money from a relative. That was a Private Money loan, likely unsecured. It wasn’t from the bank or some other institution. Most private money lenders/investors lend money through a mortgage company (there are laws that require this). The rates and fees are higher than those you’d get from a bank or credit union that does 30 fixed rate mortgages.

Why then would anyone borrow Private Money? There are lots of reasons.

You can get a Private Money loan in spite of a foreclosure, bankruptcy or short sale!

I thought to make the above sentence read like a headline, because it should. No bank or credit union or anyone doing home loans other than Private Money will lend to someone who had a recent bankruptcy, foreclosure or short sale. Further, the property you want to borrow against may not be something a bank will lend on. Banks require a property be in good shape. What if you are looking for speed? Private Money loans are generally much faster than a bank loan. What if your credit isn’t bank worthy?

That’s because Private Money loans are based largely on equity. The most you will get is 70% of the value of the property. If it’s worth $300,000.00 you will be able to get $210,000.00. If you want a 100% loan, Private Money will not work.

Here is an example of a Private Money Loan. The Buyer had almost all of the money to purchase a house. She needed only $75,000.00 more – but didn’t qualify for a bank loan. The purchase price was $231,000.00. She only wanted to borrower 32% of the value. That loan got done within 4 days for a quick close. She beat out other’s that put in offers for the house. She could and did quickly close and her house payment is the payment on $75,000.00.

Another example. A contractor wanted to buy a dumpy house. No bank would lend on it because it was so dilapidated. The contractor had enough for a decent down payment and proved he had enough to money fix it up and then resell. He got a Private Money loan and was able to fix up the house and pay off the loan within 4 months.

Maybe you need a Private Money Loan!

Owner is a CA DRE Broker with over 20 years experience in real estate and lending. His number is (707) 523-2099.

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