Hard Money loan qualifications are more forgiving than conventional or bank financing and the two basic qualifications are:
#1. Decent existing real estate equity or at least a 25% down payment if a purchase and #2. An ability to repay the loan.
You could get up to 70-75% of the value of the property. If in Sonoma County, you could get up to 80%. Hard money loans are based largely on equity from real estate assets.
Basically considered all cash, such loans are extra strong and can be used to purchase or refinance fixer properties, bad credit borrowers, irregular income borrowers, large cash-out borrower, someone needing fast cash, short term Bridge loans, etc.
Owners still need to refinance their homes to make home improvements, buy a 2nd home or investment property and Buyers still want to buy even with tarnished profiles. Hard Money is the only option out there if they have been turned down by their favorite bank or mortgage broker or local Lender.
Many people have credit card rates that are 15% to 32% and Hard Money rates average 9% to12% with interest only payments. It will likely cost a bit more than a 30 year fixed rate loan and the rates are higher but it can get you the money you need you have been turned down elsewhere for a refinance or home loan.
We invite you to call us at 707-523-2099 and see how Hard Money will work for your situation. Having worked with many types of loan scenarios since 1988, we are quite experienced, we are honest, fast and our rates are pretty good!
Many potential home buyers believe that they need a score over 780 to qualify. In today’s world, this is no longer true.
One of the more common misconceptions keeping potential home buyers from beginning their search has been the fear that their credit score is too low.
According to a recent study by The Wharton School of Business, the good news is that over 50% of all approved loans had a FICO Score under 750.
Taken from a recent KCM blog post (full article link below), this depicts nicely what the real scoop is:
Below is a breakdown of the FICO Score Distribution of all closed (approved) loans in August from Ellie Mae’s latest Origination Report.
The chart above illustrates the point that low credit scores are not a reason to avoid seeking a mortgage. More than half of all loans in August were awarded to individuals with credit scores as low as 600.
At Sun Pacific Mortgage we welcome not only low credit scores, but bankruptcies, imperfect properties, difficult-to-prove income and a host of other issues that the conventional lender won’t consider. We finance jumbo loans, bridge and short term loans, owner occupied purchases and refinances, investment purchases, commercial and land.
Call today with any questions or scenarios and we’d be happy to help!
NOTE: Get our financing despite bad credit, difficult to prove income, property a fixer, etc! We finance Jumbo loans, Bridge and short term loans, Owner Occupied purchases and refinances, investment purchases , commercial and land.
CALL TODAY, The Guys In The White Hats at (707) 523-2099
To benefit you and your clients, we have just updated our rate sheet to easily show the alternative finance programs we offer taking into account the numerous changes, due to recent regulations handed down by the Feds.
Please let us know if you have any questions. And for sure let us know if you need our assistance for yourself, friend or any of your clients!
With Real Estate prices rebounding in California, it’s surprising to see banks still being cautious and lean only toward wealthier, lower-risk borrowers. This has left a widening gap in the mortgage industry between Lenders and potential Borrowers with less than perfect qualifications. Mortgages in the U.S. last year totaled about 1.6 trillion, according to the Mortgage Bankers Association. On a scale like that, Private Lending trails closely behind, with demand growing every year.
These days, Borrowers typically only need one or more flaws in their qualifications to be denied traditional lending. This can be a huge disappointment to Borrowers who otherwise have fantastic qualifications and are in great need of help.
“Ms. Lewis is an executive director of Los Angeles County’s Mental Health Commission. She has over 22 years of equity in her home with an estimate worth of $600,000. A recent divorce and subsequent bankruptcy has ruined her credit and caused loan rejections from every bank she approached.”
As an experienced, longtime Private Money Broker operating in Sonoma County California, Sun Pacific Mortgage & Real Estate could approve her loan based strictly on her job status, steady income, and available equity. Her recent bankruptcy would not affect her qualification in this scenario.
Have you been turned down for a loan due to less than perfect qualifications? Call Sun Pacific Mortgage & Real Estate today! (707) 523-2099
“The entire family and staff at Sun Pacific Mortgage are the best hands down. They are honest, direct, professional, quick, efficient and realistic. It was like when everyone else seemed to be against us, Sun Pacific found a way to make things happen. We cannot thank them enough! “ LW
See below for some of our recently funded loans, to get a better idea of our various real estate finance programs.
Let us help you, your clients, your family and friends! Call Us today at (707) 523-2099.
Ken and Forest, The Guys in the White Hats P.S. We love referrals!
Get our financing despite credit score, self employed-difficult to prove income, need fast financing, property a fixer, etc!
We finance Jumbo loans, Bridge and short term loans, Primary Residence or Owner Occupied purchases and refinances, non-owner purchases for single and multiple units, some commercial and land.
Windsor, CA (Sonoma County)
Loan Type: Owner Occupied 2nd
Days to fund: 15 days
Reason for Hard Money: Credit was poor
Modesto, CA (Stanislaus County)
Loan Type: Investment Property Cash-out Refinance
Days to fund: 29 days
Reason for Hard Money: Property needed fixing
Sebastopol, CA (Sonoma County)
Loan Type: Owner Occupied Purchase Bridge Loan
Days to fund: 10 days
Reason for Hard Money: Needed fast cash to buy new home while selling old house.
Lakewood, CA (Los Angeles County)
Loan Type: Owner Occupied Purchase Temporary Loan
Days to fund: 16 days
Reason for Hard Money: Property a fixer
Mill Valley, CA (Marin County)
Loan Type: Non-Owner Refinance
Days to fund: 8 days
Reason for Hard Money: Recent Bankruptcy
San Diego, CA (San Diego County)
Loan Type: Owner Occupied Business Purpose
Days to fund: 18 days
Reason for Hard Money: Self Employed, difficult to prove income
Sonoma, CA (Sonoma County)
Loan Type: Owner Occupied Business Purpose
Days to fund: 9 days
Reason for Hard Money: Divorce circumstances adversely affected credit score
Most Hard Money Lenders these days do not offer Owner Occupied financing programs, also known as a Principal Residence Loans, due to the amount of federal and state regulations that apply to them.
Here at Sun Pacific Mortgage, we will always have this loan program available because of the important niche it fills for so many Borrowers. We continuously work to stay on top of the regulations that apply so that people have somewhere to go when they have have tarnished credit, difficult to prove income or are dealing with a problem property.
This type of program does have a higher interest rate but it allows a quick close, makes an impossible deal possible, offers various options and is generally a shorter term loan.
Typically, this type of loan will get paid off with a refinance into a 30 year fixed rate loan once the Home Owner is more able to qualify.
Some instances of when one might use an Owner Occupied/Principal Residence Loan are:
Buying a first or a 2nd
Refinancing a loan that has come due.
Pulling some cash out from the equity in one’s home, to do needed repairs or remodeling.
“Gave us an excellent rate on our hard money loan and we got our money 5 days after we applied! I highly recommend Sun Pacific Mortgage!” LW
“I can’t say enough good things about this company! The best experience I have ever had! Helpful & fast from the start! I highly recommend Sun Pacific Mortgage!! Thanks so much to the whole Sun Pacific Family!” PD
Spring has sprung and Buyer demand is increasing. Agents, Lenders and Buyers need their best foot forward when submitting offers.
Our Hard Money programs can help sweeten a deal as well as quickly fund if needed, despite poor credit, bankruptcy, short sale, difficult to prove income, etc.
See below for some of our recently funded loans so you can get a better idea how we are here to help you!
Call Us today (707) 523-2099.
Ken and Forest, The Guys in the White Hats
P.S. We love referrals!
We finance Jumbo loans, Bridge and short term loans, Primary Residence or Owner Occupied purchases and refinances, non-owner purchases for single and multiple units, some commercial and land. Get our financing despite credit score, self employed-difficult to prove income, need fast financing, property a fixer, etc!
San Rosa, CA (Sonoma County)
Loan Type: Owner Occupied Bridge Loan
Days to fund: 15 days
Not Qualified Elsewhere: Wanted to buy new home before selling current house.
Calistoga, CA (Napa County)
Loan Type: Investment Property Refinance
Days to fund: 13 days
Not Qualified Elsewhere: Owns multiple properties and credit issues
San Francisco, CA (San Mateo County)
Loan Type: Owner Occupied Refinance, Business Purpose
Days to fund: 35 days
Not Qualified Elsewhere: Bankruptcy in recent years
Willits, CA (Mendocino County)
Loan Type: Non-Owner Occupied Purchase
Days to fund: 17 days
Not Qualified Elsewhere: Property a fixer
Petaluma, CA (Sonoma County)
Loan Type: Primary Residence with Business Purpose
Days to fund: 121days
Not Qualified Elsewhere: Self Employed, and credit issues
San Marcos, CA (San Diego County)
Loan Type: Owner Occupied Refinance
Days to fund: 21 days
Not Qualified Elsewhere: Self Employed, difficult to prove income
Santa Rosa, CA (Sonoma County)
Loan Type: Refinance of Commercial Property
Days to fund: 26 days
Not Qualified Elsewhere: Divorce circumstances adversely affected credit score
I admit that I had very little understanding about this type of alternative financing when my parents asked me to move back to Sonoma County and work in the family business, after living on the East Coast for so many years. I’m sure glad my wife and I decided to live in Santa Rosa and participate in this unique real estate finance option as it has and can help so many home buyers!
I bought my own home in Santa Rosa using Hard Money as I was self employed and my wife had less than 2 years of tax returns from her W2 job. We couldn’t get a home loan from anyone we called, just kept getting turned down and this was despite us having a 25% down payment. We really did not want to miss out on this house, good area, nice neighborhood and close to a good school. So, we decided to get a Hard Money loan and boy are we glad we did! We found out from the Listing Agent that the Buyers accepted our offer as it was stronger than others, since we could close fast with the Hard Money financing, as it was virtually considered cash and it came from a company that was well known, having been in business for almost 25 years.
Since this time, as the Lead Loan Originator for Sun Pacific Mortgage and Real Estate, I have worked hard to help others understand the benefits of Hard Money financing (also known as Private Money). Sure it has higher interest rates but this is all relative to what one is currently paying in rent or will be paying for rent. Our family’s monthly payments increased by only $200 from our apartment we were renting but it was completely worth it as we got an entire house with a nice yard – and were able to refinance about 9 months later!
So the question really should just be, “Is Hard Money right for me?”. We know hard money is legitimate when gotten from a licensed Hard Money Broker and that it can be very beneficial in the right circumstances…just as it is with other types of conventional financing.
If you have any other questions or are interested in getting a Hard Money loan in Santa Rosa, Sonoma County, North Bay or really anywhere in California, please do call me at our office 707-523-2099 and I will let you know how we can help.
Best, Ken – Another Guy in the White Hat
Lead Loan Originator at family owned and operated Hard Money Broker, Sun Pacific Mortgage and Real Estate, serving all of California since 1988!
CA Bur RE license #01858042. NMLS #1221130.
Having a local, truly experienced and educated Hard Money Broker behind you for your purchase or refinance is more important than you may think.
A recent Hard Money article in Trust Deed Capital BLOG covers the importance of this quite nicely. Titled “Qualities of Top Hard Money Lenders”, posted by Ken Meyer.
I can say with complete certainty that after 28 years of Northern California real estate and mortgage experience under my belt, I can let a home buyer, investor or another real estate agent know within just a few minutes if they are qualified for a hard money loan or not.
Having extended my reach throughout California over the past 6 or so years, my family owned and operated alternative finance Brokerage is become more and more expert with the real estate in the Southern and Central California as well.
I have included the original link to the above mentioned article as well as the article itself below, it is important to share with anyone who is considering an alternative source of real estate financing due to poor credit, being turned down elsewhere, being self employed with difficult to prove income or you just need fast financing.
Best, Forest – The Guy in the White Hat
Co-owner and Hard Money Broker of Sun Pacific Mortgage & Real Estate
Posted by Ken Meyer on Tue, Dec 08, 2015
While it may seem, to the inexperienced, that hard money lenders operate in a “no man’s land,” the reality is, the top Hard Money Lenders have certain key characteristics in common. If you do decide to retain the services of a hard money lender, here are some of their best practices that you should be on the lookout for:
If you are looking for a hard lender because you have been rejected by a bank, then you might be tempted to run to the first hard lender you can find to get your loan quickly. But do your due diligence first. Some hard lenders are genuinely interested in helping you finance your real estate project, but others are little more than loan sharks. Ask yourself some of the following questions as you areassessing potential lenders:
1. Does the lender have someone that you can meet with and contact? Some hard money lenders operate in all 50 states, but you might consider finding one who operates in your state. The most reputable hard money lenders will want to see the property you are planning to purchase firsthand.
2. Does this lender have a legitimate web site? Many hard money lenders have web sites that are designed to gather your information before passing it along to a third party. Avoid these kinds of sites.
3. Is the lender in good standing with its investors? Does the lender have any pending lawsuits from its investors over bad loans or foreclosed properties? If it does, this can be a red flag as to the financial health of the lender.
Seasoned Investing Knowledge
Most hard money lenders are not the mindless paper-shufflers that you find at a traditional lending institution that need to get acceptance for every decision that they make. Instead, they are seasoned investors who have been to this particular rodeo more than once and can quickly and efficiently vet a deal that is worthy.
Most hard money lenders have been in the real estate game for most of their adult life. They understand that manyproperty deals do not fall into the neat categories set by the traditional lending institutions in the industry. Their vast experience, however, allows them to evaluate a deal on its merits, rather than on some arbitrary criteria set up by a lending committee.
The hard money lending industry is a reputable one that recognizes the value of secure business transactions. For this reason, hard money deals are structured along the lines of traditional mortgages. That is, appraisals and inspections are done, escrow accounts are established, and standard written contracts are utilized. The whole point of the process being to protect the interest of both the borrower and the lender.