To properly answer this question, we must first identify the meaning of a “private money” and “hard money” loan. In short, these terms are interchangeable and is a type of loan that is secured by real property. They are generally short-term loans with the Lender being an individual or company rather than a bank.
These loans can raise money quickly but at a higher cost and use property as collateral. The terms of these loans are based mainly on the value of the property, not the creditworthiness of the borrower. Since banks do not make hard money loans, these types of loans are offered by private individuals that see the value in this type of venture.
The increased expense of a private money loan is a tradeoff for faster access to capital, a less stringent approval process, and flexibility in the repayment schedule. They are typically used in turnaround situations, short-term financing, and by borrowers who need fast financing or with poor credit but substantial equity in their property. They are frequently used to stave off foreclosure because they can be issued quickly and for those who are self-employed with difficult to prove income.
While many Private Money Brokers and Lenders are not participating in offering financing for owner-occupied properties, Sun Pacific Mortgage has continued to offer this program. This is one of our most popular programs. We get many other Mortgage Brokers, Loan Originators and Realtors sending their Home Buyers and Borrowers to us for help.
If you are curious about the benefits of a private money loan for you, give us a call at 707-523-2099. Or reach out to us directly through our website at https://www.sunpacificmortgage.com/contact-us/
We are licensed in California and have borrowers from Eureka to San Diego and everywhere in between! There is no need to come into our office. We handle all transactions with phone calls and digital processes.