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What is a Bridge Loan?

Real estate agents, investors, home buyers and home sellers alike should know about this short term real estate loan, or should I say smart home buying strategy. A Bridge or temporary loan is a type of Creative Financing that some Lenders offer.

 

It is a short term loan, 12 to 18 months only.  It gets paid off with longer-term financing down the line or from the sale of a property.  It essentially Bridges a Borrower from one point to the next.

 

The Benefits:

  1. A Bridge loan is deemed cash by Listing Agents.
  2. Your Buyer does not have to have a contingency of their home selling to use a bridge loan.
  3. A home owner can buy another house now and sell their home later.
  4. There is no fear of the buyer finding their dream home because they still have to sell their current home at the same time.  This is not required with a bridge loan.
  5. Your buyer can buy a fixer, fix it up and have their dream home that way.

The Requirements:

  • This will be a 12 month loan.
  • A minimum of 3 months payments are due.
  • You have to have at least 20-25% for the down payment on a purchase.
  • You have to have decent equity in your existing property on a refinance or pulling cash out.

The Uses:

While there is really no limit on when a bridge loan can be used, as long as the borrower is comfortable with the terms, most bridge loans are typically sought when another sale is pending and the funds are needed to consummate the final deal, permit approvals hold up a project or, most typically, in a “fire sale” situation when a seller must close a deal within a specified period of time.

 

Some instances of when you might use a Bridge Loan are:

  • Pulling some cash out from the equity in your current home and using that money as a down payment to purchase another home.  This allows you more time to sell the home you are currently in.
  • Buying a house to fix and resell, also known as Flipping.
  • Using the Bridge loan to acquire a home that is in disrepair, fixing it up to live in it and then converting the loan to a 30 year fixed rate loan within the 12 to 18 month period.

 

The Costs:

Rates and costs for Bridge Loans can vary by Lender, of course.  Generally speaking however, rates range between 9-12%, interest only.

 

How We Can Help You:

We are licensed for the entire state of California and have been in business for over 27 years now.  Call our office at 707-523-2099 and within just a few minutes, we can let you know what we can do for you!

 

You can also find out all the we offer on our website at www.sunpacmortgage.com and you can email us through our website or at the email below.

 

I hope this has helped you understand more about what a Bridge loan is.

It Pays To Buy VS Rent

The recent KCM article “Don’t Get Caught in the ‘Renter’s Trap’ might surprise hopeful home buyers. http://www.keepingcurrentmatters.com/2014/08/27/dont-get-caught-in-the-renters-trap/  Written by The KCM Crew on August 27, 2014

“If you are currently renting you could get caught up in a cycle where increasing rents continue to make it impossible for you to save for a necessary down payment. ZillowChief Economist Dr. Stan Humphries explains:

“The affordability of for-sale homes remains strong, which is encouraging for those buyers that can save for a down payment and capitalize on low mortgage interest rates… As rents keep rising, along with interest rates and home values, saving for a down payment and attaining homeownership becomes that much more difficult for millions of current renters.”

Zillow Source: http://www.zillow.com/research/rental-affordability-job-growth-9322/

Don’t miss out on buying now because you think you aren’t qualified for a home loan.

Find a good local Lender and start yourself on the road to getting pre-qualified for a home loan.
The above blog lays it out pretty clearly.

I like to help spread the truth that there are more loan options for hopeful home buyers and it starts with finding a good local lender to take the first step and ask the question, “Am I qualified?”.

And some who aren’t qualified immediately could in the near future so a private money loan could be the option to get you out of a rental now, improve your credit or loan qualification situation, and then refinance in the near future.  You’d be surprised how many don’t realize how cost effective it really is – in the long run.

 

 

Lynn Tardibuono is Co-Owner/Hard Money Loan Originator & Realtor® of Sun Pacific Mortgage and Real Estate, family owned and run since 1988 in Northern CA. P.S. We love referrals!www.sunpacmortgage.com.  BRE license #01464899/NMLS #360993

Hard Money Rescues Turned Down Loans

Check out our most recent Hard Money video here:

 

Hard Money Rescues Turned Down Loans

 

If you feel like your loan application is drowning, soon to “die” by getting
turned down, then you need to watch this video of how I can rescue such a loan.

Real Estate loans can be hard to get for some with poorer credit, who are self
employed, had a recent foreclosure or bankruptcy. Or, you may just need a fast
loan and can’t find an “A” paper Lender who can fund fast.

This sounds like your loan request needs to be rescued, so call me, Forest – The
Guy in the White Hat! (707) 523-2099.

I can help with those drowning loans! For well over 25 years I have been
specializing in loans to Borrowers who have been “Turned Down Elsewhere” as well
as offering all other types of loans. For the last 4 or 5 years I have only
done Hard Money Loans. Recently, about 70% of the loans I have funded I had to
rescue from “A” paper lenders as they were declined for whatever reason.

There are really just 2 requirements for a Hard Money Loan: #1 You have to have
a pretty good down payment for a purchase or equity if a refinance and #2 The
ability to repay the loan.

Call me! Hope to be able to help you soon!

 

Best,

Forest

P.S. – We love referrals!

 

Loan approval is based on just 2 criteria:

1. Good Down Payment or Decent Equity

2. Ability to Repay

 

• Owner Occupied, Investor financing, Commercial and some Land Financing

• FAST private money purchase financing Sonoma County & Northern California.
• FICO is not a factor.
• Up to 80% loan to value, Case by case basis.
• Loan amounts from $75k – $1mil+
• Lower rates with Good Compensating Factors, Case by case basis.
• Fast refinancing.

CALL FOREST, The Guy In The White Hat at (707) 523-2099;

Or email him at forest@sunpacmortgage.com

See our website at: www.sunpacmortgage.com

 

CA BRE Broker – California Bureau of Real Estate Broker.   Corporate License # 01464899.

NMLS – Nationwide Mortgage Licensing (Registry) System.  Office NMLS # 360993

*APR based on loan amount of $130,000 is 9.469%.

Hard Money Loan Saver

Check out our most recent Hard Money video here:

 

Hard Money More Attractive than Ever

 

Hello,

My last blog was the Federal and California report and forecast.

I live and operate in Sonoma County so that is the first region I’ll explore.  I would guess that about 33% of the loans I write are in Sonoma County.  That’s a disproportionate amount considering I lend in the top half of the state, from Salinas to the Oregon border and east to Nevada.

Lots of good news to report for Sonoma County. There was an Economic Development Board report in April 2014 that demonstrated Sonoma County business activity beats the U.S. average as a whole in expenditures for growth and customer demand. The trend is upward for commercial-sector confidence.

Another report from March 18, 2014 stated that Sonoma County’s economy is poised to further recover through 2015, bolstered by national growth that will spur gains in tourism and the wine industry, while additional support comes from, among other things, a stronger housing market.

In the Sonoma County real estate market, as in a lot of the counties in the Bay area,  prices are being driven up sharply by the lack of inventory.  This is good news if you are already into a home, but could make it difficult if you are looking to buy, either as your first purchase or trading up.  You should keep in mind that using Hard Money in this market may make your offer more attractive to a Seller – and their agent, as in many instances it is deemed the same as cash.

So that’s the report on Sonoma County.   And if you are trying to buy, persist.  Home ownership is still the best financial investment you can make at any time in your life.

 

Best,

Forest

P.S. – We love referrals!

 

Loan approval is based on just 2 criteria:

1. Good Down Payment or Decent Equity

2. Ability to Repay

 

• Owner Occupied, Investor financing, Commercial and some Land Financing

• FAST private money purchase financing Sonoma County & Northern California.
• FICO is not a factor.
• Up to 80% loan to value, Case by case basis.
• Loan amounts from $75k – $1mil+
• Lower rates with Good Compensating Factors, Case by case basis.
• Fast refinancing.

CALL FOREST, The Guy In The White Hat at (707) 523-2099;

Or email him at forest@sunpacmortgage.com

See our website at: www.sunpacmortgage.com

 

CA BRE Broker – California Bureau of Real Estate Broker.   Corporate License # 01464899.

NMLS – Nationwide Mortgage Licensing (Registry) System.  Office NMLS # 360993

*APR based on loan amount of $130,000 is 9.469%.

Job Growth, Home Sales Will Continue Expanding in 2014 and Beyond

As Hard Money Broker and business owner this good article to share, mostly highlighting the last bullet points:

 

Looking ahead, the latest Burns report predicts:

§U.S. home prices will rise another 15 percent  from 2014 through 2017.

§Home prices will reach “normal affordability levels” in 2015 and then become unaffordable.

§Interest rates on 30-year, fixed-rate home loans will reach 4.5 percent in 2014, 5 percent in 2015, 5.5 percent in 2016, and 6 percent in 2017.

 

Read the rest here: http://blog.pacunion.com/job-growth-home-sales-expand-2014-beyond/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+pacunionblog+%28Pacific+Union+Blog%29

Flipping properties in North Bay….when done smartly it’s good for everyone.

Flipping properties in North Bay….when done smartly it’s good for everyone.

 

Having done many loans in the past and currently for flippers, I am with Rick Laws and Patrick Barber on what they say (see below Pacific Union Bay Area Real Estate Blog of June 6 2013 “San Francisco, Santa Rosa Metro Areas Ranked Among Top 25 Spots for Home Flipping”).  The price ranges for flippers has increased and the luster being added back into neighborhoods is really good, I say.

houses and their reflection

Blog with full article: http://blog.pacunion.com/sf-santa-rosa-metro-areas-home-flipping/#disqus_thread

 

My wife, Lynn, as the “Flipper Chick” Realtor she is really familiar with the flip market right now.  She definitely is working extra hard to find the best properties for her client so he can fix them up well enough to pull in some profit.  Santa Rosa’s values are moving up so fast that it’s a constant gamble.

 

I always enjoy hearing what neighbors say about the run-down houses that get fixed up.  They only increase the value of their own house!  Below was a recent neighbor who emailed Lynn about her client’s/flipper’s good work:

 

“What a beautiful flip on Monte Verde.  I live a few doors down and it has been fun to see this property transformed in a short period of time.   What a GREAT job.  Please tell the owner the neighborhood appreciates the change. Enjoy this beautiful day.” Dorothy

 

If you have hard workers who take an honest passion in their job of fixing up a house, it will be good quality and they deserve any profit they make! Which is their living’s work.

 

Best, Forest

 

 

Forest Tardibuono is Co-Owner and CA DRE Broker known as “The Guy in the White Hat” of Sun Pacific Mortgage & Real Estate – Your Northern CA Hard Money Lender since 1988.  www.sunpacmortgage.comDRE license #01464899/NMLS #360993

 

Hard Money Loans From The Guy in the White Hat!

 

 

 

 

Hello again everyone;

I wanted to let each of you know that I have many investors available to fund local loans, throughout Sonoma County and the contiguous counties.

 

It’s been a really busy month for hard money loans and I know with the current real estate market it isn’t going to quiet down, which is fine with me.

I like being able to work with many of you, helping your clients get their deal closed!

 

Below are recent hard money loans funded through my office.  I hope it gives you a better idea of how I can service you and/or your clients with hard money loans. 

 

Best,

Forest

RECENT HARD MONEY LOANS

 

Martinez, California – Refinance

Hard Money Loan of $280,000 for 60 months @ 8.5% interest only!  Borrower has owned this rental property for 12 years.  It’s a 4/2 and 1,430 sq. ft. with a 7,000 sq. ft. lot. Based on comps has a loan to value of 53.8%.

 

 

Healdsburg, California – RUSH loan for owner occupied purchase

Hard Money Loan of $220,000 for 85 months @ 9.25% interest only!  Loan to value is 36.67%.  The home is 3 bed/2 bath and 1,900 sq. ft. on a 19,119 sq. ft. lot (.44 acre) that was just completed.  Good looking home.

 

 

Mountain House, California – Owner occupied purchase

Hard Money Loan of $150,000 for 85 months @ 10% interest only.  Loan to value based recent appraisal is 40.5%.  The home is 4 bedroom, 2.5 bath of 2,791 sq. ft. on a 6,098 sq. ft. lot.  Very nice home.  Good loan to value.

 

 

Oakley, California – Owner occupied purchase

Hard Money Loan of $245,000 for 85 months @ 10.25% interest only!  Loan to value is 70%.  The home is 4 bed/3 bath and 3,486 sq. ft. on an 8,838 sq. ft. lot that was built in 2007.  Nice looking home.

 

 

 

Oakland, California – RUSH loan for non-owner purchase

Hard Money Loan of $93,750 for 24 months @ 12% interest only.  Purchase price is $125,000.   Loan to value is 75%.  This is a duplex.  Units are each 2 bed/2 bath of 788 sq. ft. on 4,791 sq. ft. lot built in 1946.  Buyer is a busy realtor. This is my 5th loan to her.

 

 

 

Santa Rosa, California – Owner occupied purchase

Hard Money Loan of $80,000 for 85 months (@ 12.0% interest only.  Loan to value of 70%.  The unit is a 2/1 at 816 sq. ft. built in 1959.

 

 

 

Forestville, California –  Refinance

Hard Money Loan of $50,000 for 85 months @ 8.0% interest only!  This is a cash-out refinance for a property that was purchased all cash in March 2012 for $140,000.  Loan is 35.72%.  The home is 2 bed/1 bath and 908 sq. ft. on a 6,534 sq. ft. lot built in 1950.

Borrower stated they did spend $45,000 to $50,000 remodeling the home.

 

 

Stockton, California – Non-owner purchase

Hard Money Loan of $53,000 for 36 months @ 13.0% interest only.  Loan to value is 70%.  This is a short sale that is finally happening.  This is a 4 plex.  Rents will be from $750 to $900.  Buyer has been a real estate agent for almost 4 years.  This will be the 4th loan I have done for her.  She has decent credit and great income.

 

 

Our loan approval is based on just 2 criteria:

1. Good Down Payment

2. Ability to Repay

  • Owner Occupied and Investor financing
  • FAST private money purchase financing Sonoma County and contiguous Counties
  • FICO is not a factor
  • Up to 75% loan-to-value – Case by case basis
  • Lower rates with Good Compensating Factors– Case by case basis
  • Loan amounts from $40,000 – $2 million
  • Fast refinancing.

 

SPECIAL NOTE: WE CAN DO A LOAN FOR SOMEONE FRESH OUT OF FORECLOSURE, BANKRUPTCY OR SHORT SALE!

 

 

 

CALL FOREST – The Guy in the White Hat – at (707) 523-2099;

Or email him through the website at: www.sunpacmortgage.com

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A California Private Money Lender You Want To Do Business With

 

The below article (reprinted with permission) is an exact description of the relevance and importance of Private Money Lenders here in Sonoma County, in the USA and probably planet wide.

If we left it to the bailed out banks, zero money would have been lent during the years of the most recent real estate debacle.

The dust is finally settling on who remains standing in the real estate lending arena.  It really boils down to the “A” lenders who do the 30 year fixed loans and the Private Money Lenders.  There are no more “B” and “C” lenders.  There is no subprime lending.

There is no World Savings with their Quick Qualifiers and stated income programs.

After you take your shot with the “A” lender(s) and they say “NO”, you go straight to Private Money.  These Lenders stand ready and willing to fuel the future of real estate in America today.

Article: TheNicheReport “PRIVATE MONEY LENDERS HAVE FUELED THE REAL ESTATE RECOVERY“  by Corey Curwick Dutton, a private money consultant for Private Money Utah. www.PrivateMoneyUtah.com
 

Best,

Forest Tardibuono

Owner/Broker – The Guy in the White Hat

 forest and his hat_small

How To Make FHA Offers To Buy A House, More Enticing

 

A REALTOR’S VIEWPOINT – ON LENDING FOR TODAY’S MARKET

As a real estate agent you need to know the products out there for the buyer.  I mean loan products.  Everyone and anyone could buy a home during the heyday!  Now it’s more limited – houses for sale and there are really only a few loan programs:
 

  1. The government regulated (Fannie Mae/Freddie Mac, FHA, VA)
  2. The In-House loans (credit unions and local banks)
  3. Lastly “Hard Money”

 
The government regulated loans such as FHA are regulated – heavily.  The banks and underwriters are worried they may approve a loan incorrectly and get pounced on by the regulators.  This is likely to relax in the coming months and years, though there are some shrewd enough to make such loans appear stronger in offers today.
 
More in-house loans are being done by credit unions and banks and can appear stronger in offers.  These are not regularly done by Fannie/Freddie or FHA or VA.  They are irregular loans such as lots of acreage, farms, etc.  Local knowledge is really needed for these types of loans.
 
Hard money is something that has come into its own.   There is little bureaucracy, deals can be approved and closed in just a few days, there’s no red tape as to qualifications and rates are improving with the hot real estate market.  Basically considered “all cash”, such loans are extra strong and can be used to purchase or refinance dump property, bad credit borrower, irregular income borrower, large cash out borrower, Bridge loans, etc.
 
As you have seen, the housing market values are only going up, but still the current prices are too good to miss out on…so realtors now, more than ever, need to be extra shrewd when helping Buyers’ submit strong offers and also match them with a really good Lender who is extra shrewd.
 
And to that I say, “thank goodness for shrewd agents and lenders!”
 
 

Lynn Tardibuono, Co-Owner and Realtor-Flipper Chick, has helped many, many Buyers & Sellers buy and sell homes throughout Sonoma County.  She is a CA Realtor® with more than 25 years of experience in real estate and lending.   Office phone number is (707) 523-2099.  See website @ www.sunpacmortgage.com. DRE license #01464899 and NMLS #360993.

Get California Hard Money Loans From This Posse

Below are recently funded loans through my office. I have been extremely busy with the many loans coming into our office, but don’t think this will put your loan on a back burner.  Oh no, we give fast and friendly service to every single person!

Please take a look at these loans, to see if you have similar scenarios that I could possibly be of service to you.  If you or someone you know has been turned down elsewhere for a real estate loan, don’t hesitate to contact me if there is any equity involved or some cash for the down payment.

No matter where you are in Northern California, when you think of Hard Money – big or small loans – think of The Guy in The White Hat at Sun Pacific Mortgage and Real Estate to fund that loan!

 

Best,
   Forest

 

                               Funny and Informative Video: http://youtu.be/k5wcwytcWes



FUNDED RECENT HARD MONEY LOANS

 

Owner Occupied Purchase Loan: Lincoln, CA – $130,000 for 85 months @ 8.0% interest only.  Purchase Price is $280,000.  Loan to value is 46.4%.  Home is a 2 bed/2 bath at 3,086 sq. ft. built in 1938 on almost 1/3 acre lot.  This home sold for $630,000 on 8/2/2006!

 

Investment Property Loan: Earle Street, Santa Rosa –$140,250 for 85 months @ 11.5% interest only.  Purchase Price is $187,000.  Loan to value is 75%.   The home is a 3 bed/1 bath at 1,037 sq. ft. on a 4,356 sq. ft. lot.  Buyer has 15 years in the same line of work and she can easily afford the home.

 

Commercial Loan: Foothill Blvd, Calistoga –$400,000 at 12% interest only for 60 months.  Appraised value as of 12/10/2012 is $930,000.  Loan to value is 43%. Borrower has owned the property since 1991 and her parents owned it before that.  2 of the 3 units on the property are rented for a total of $8,000 monthly.  She is currently under negotiations for a tenant for the 3rd unit.  The longest term tenant is an auto repair shop.

 

Owner Occupied Purchase Loan: Crockett, CA – $128,175 for 85 months @ 12.0% interest only.  Purchase Price is $170,900.  Property is 2 bed/1 bath at 1,309 sq. ft. The lot is 5,670 sq. ft.  The Buyers have FICO scores in the 680+ range, very little debt, the husband has been on the same job for over 7 years and has great verifiable income.

 

 

Our loan approval is based on just 2 criteria:

1. Good Down Payment

2. Ability to Repay

  • Owner Occupied and Investor financing
  • FAST private money purchase financing Sonoma County and contiguous Counties
  • FICO is not a factor
  • Up to 75% loan-to-value – Case by case basis
  • Lower rates with Good Compensating Factors– Case by case basis
  • Loan amounts from $40,000 – $2 million
  • Fast refinancing.

 

SPECIAL NOTE: WE CAN DO A LOAN FOR SOMEONE FRESH OUT OF FORECLOSURE, BANKRUPTCY OR SHORT SALE!

 

 

 

CALL FOREST – The Guy in the White Hat – at (707) 523-2099;

Or email him through the website at: www.sunpacmortgage.com

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