I wanted to tell my personal story about Hard Money financing to help other families struggling with loan approvals.
My Husband and I could not get any local bank or credit union to approve our loan application to buy our first home. I had not yet worked at my job for 2 years and my husband was self employed with difficult to prove income. But, we had come upon the perfect home and had a good down payment so did not want to miss out!
Fortunately for us, my Husband’s Parents, Lynn and Forest, own Sun Pacific Mortgage, a Hard Money lender. Sun Pacific offered financing for principal residence (owner occupied) purchases. We did a loan application and he Pre-Approved us on the spot! YAY!
Within 2 days Forest had our home loan approved by one of his many private investors. He also said he would get us connected with a good, local conventional lender to help us refinance as soon as we could, for that lower home mortgage rate. How nice!
After all was said and done, the Sellers accepted our offer over others with conventional financing because we could close fast and basically had a cash offer. We bought our first home with a 10.5% interest only loan. Before your mouth drops open as much as mine did at first, listen to what this really meant:
This “high cost mortgage” really was only $200 more a month than I was already paying for my small apartment. That apartment had no yard, I couldn’t do what I wanted to it and I had to put up with living above noisy neighbors.
Just $200 more a month gave me a bigger home, I could paint and decorate however I wanted, I could privately enjoy backyard fun with my kids and I started benefitting from the tax right-offs of homeownership!
It really is a just a math problem: Can you afford the new monthly payment? I already knew it was worth it, even if it did cost a bit more per month. If it’s worth it and benefits your family then DO IT. Especially since you could qualify later on and get a lower interest rate upon refinancing…but if you don’t act fast, you could miss out on the deal you wanted.
This is my Hard Money loan story and why I have the passion I do when working at this Company now, helping others with similar circumstances. It’s always a happy ending!