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So, You Want to Build an ADU in California?

So, You Want to Build an ADU in CaliforniaFor a variety of reasons, thousands of California Homeowners are adding Accessory Dwelling Units to their property. Whether it is for housing adult kids, aging parents, or another source of income, these smaller homes can be built for a fraction of the cost of a new house and can be installed relatively quickly.

These units are viewed as part of the solution to California’s housing crisis and as a result we have seen laws passed over the last five years which have made it considerably easier to obtain permits while slashing local fees. Nevertheless, these projects are expensive, the rules can be complex, and the bureaucratic hurdles can be daunting.

ADUs can be attached or detached. They can be new builds or a conversion of an existing structure. According to a survey of ADU owners in Berkeley, the median construction price in 2020 was $150,000 or about $250 per square foot. Construction prices had risen dramatically since 2020, so the cost will be considerably more in today’s economy.

In support of these constructions, the law states that local governments retain some authority to set objective standards for such things as height limits, setbacks, parking requirements and landscaping, but if the ADU is no more than 800 square feet and16 feet high, set back at least 4 feet from the property line, it is eligible for a permit in any residential or mixed-use zone.

Local officials must act on a completed ADU application within 60 days or else it is automatically approved. At least that is what the law requires. A developer in Campbell who specializes in ADUs says that there is still “a ton of boxes to check” to get the project approved.

An ADU is still a complicated, costly project no matter how small it is because it requires a kitchen, a bathroom, a sewer connection and permits. As a builder in Los Angeles stated, “The stuff that you don’t see is the most important stuff-the foundation, the plumbing the electrical, what’s hidden behind the walls.”

The other key point to consider in a decision to add an ADU to your property is the increase in your property tax bill. Newly constructed ADUs are assessed at market value upon completion, which in California with a 1.25% tax rate, could raise your property tax on an ADU valued at $200,000 by $2,500 a year.

The idea of an ADU is a bit more glamorous than the reality when examining all the aspects associated with the build. But, for many Homeowners it had been the answer to otherwise unsurmountable problems. Weighing the pros and cons before embarking on a project this large, and consulting with local officials and contractors is essential to a successful outcome.

If you have been denied a loan from your bank or other lending institution, consider a privately funded loan from the investors at Sun Pacific Mortgage. Call us today at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see how we can help you with  your real estate financing needs.

Resolve Loan Issues Quick – What A Mouthful!

NOO Consumer Loans copyAt Sun Pacific Mortgage we resolve lending issues – for investment properties & primary residences alike!  We’ve helped many Brokers, Lenders and their Borrowers find a comfortable way out of seemingly impossible situations, like we recently did below:

Loan of the Week

Program: Investment Property – Consumer Purpose Loan
Loan Size: 1.4 million
Location: Los Angeles County
Why Came To Us: Borrower with FICO issues wanted to pull cash out of the equity he had in a rental property, to do some needed debt consolidation and improve his credit.  As we don’t have credit requirements, we quickly got his loan approved by our Private Investors and funded within 12 days!

If you or someone you know are looking for a fast resolution to a purchase or refinance issue, visit our website at www.sunpacificmortgage.com or give us a call at 707-523-2099 to see how our Private Money programs can help!

Behind the Scenes – at Sun Pacific Mortgage

image3 2A newsletter to current and future Investors at Sun Pacific Mortgage

For over 34+ years in the lending business, we have always viewed our Investors as our biggest asset.  Without you there would be no Sun Pacific Mortgage!  You provide the revenue that allows Borrowers to become homeowners. We have always strived to be as transparent as possible to support the confidence and trust you place in us.

With this in mind, we thought this might be a suitable time to review just what happens behind the scenes here at our office, before we even present a loan to you.

There are a number of qualifications we put a Borrower through, starting with the loan to value, loan amount, location, and property.  Provided the property is lendable, the loan amount & loan-to-value are reasonable, and the location is within California, we will take the next steps to qualify the loan.

This next step is to obtain the necessary information & verification about the Borrower, including a loan app, credit report, preliminary title report, something supporting the income & assets of the Borrower, and property valuation (we require documentation to support the valuation such as MLS Comps, a BPO, online valuation methods, or we will get an appraisal if the loan is over 65% LTV, a Commercial property, or if value isn’t apparent).

We work to get something to show what the Borrower’s stated income is; such as bank statements, CPA letter, employment letter, paystub, 1099, 1040s, W-2, etc.  It is also important to let you know we always speak directly to any Borrower 65 years or older, to ascertain that they fully understand the loan, fees, are coherent, etc.

As a note, many other Private Money companies do not obtain anything showing income or assets; they lend solely on the equity in the property.  That type of lending is true Hard Money – lending on the equity of the property.  We do hold this opinion too but like to see that the Borrower can afford the payments and we are not setting up a valued Investor with a foreclosure.

After ascertaining what appears to be a legitimate Borrower with a lendable property, we work with Title & Escrow to obtain all needed payoff demands and Title clearances.  We do this to ensure that you as the Lender are provided a clean and clear Title report with the best possible Title insurance that we can obtain.

We get about 60 requests a week for new loans!  You see only about 25% of what comes across our desk.  We have a tight vetting process and underwriting procedure.  Only after this is all done will we submit the Trust Deed Offerings to you for review & approval.

If you have interest in a particular Offering, simply respond to the offering email with your interest.  You are not approving the loan but instead, we can send you our due-diligence package that we have compiled through our vetting process for your review.

Once approved, our in-house Processors prepare Private Money Loan Docs and any other required forms for Title.

In addition to having one of the top private money attorneys on retainer, we attend the quarterly CMA (California Mortgage Association) conventions to ensure we are up to date on all Private Money lending regulations.  Yearly we keep up on our training with an 8-hour Mortgage Licensing Continuing Education Course through the National Mortgage Licensing Board, and every 4 years we do a 20-hour Continuing Education Course through the Department of Real Estate.

So, there you have it, a glimpse into what we are doing behind the scenes to assist in bringing you qualified Borrowers & properties to lend against, for stronger returns.

If you aren’t already an investor with us, visit our website at www.sunpacificmortgage.com to learn more. Also, feel free to contact us through our website or call today (707) 523-2099 more info!

A Bridge To The Future – Private Money

A Bridge To The Future - Private MoneyPrivate Money – The Bridge To A Future Home

After 34 years of experience, we are specialists at helping bridge the distance for individuals who need additional financing to buy a new home, before selling their current house. Let us help you or someone you know with our popular Private Money Bridge loan program, like we did below.

Loan of the Week

Program: Bridge Purchase
Loan Size: 1.4 million
Location: San Luis Obispo County
Reason Came To Us: A Mortgage Broker brought his Borrower to us for some fast help. Their financing was disapproved by underwriting at the last minute due to debt-to-income ratio being a bit too high.  This wasn’t an issue with our programs due to the great equity in his current house.  As we have no DTI requirements, we were able to rapidly get him approved and loan fully completed in just 13 days!

Visit our website at www.sunpacificmortgage.com or call today 707-523-2099 so we can let you know what we can do to help you or someone you know bridge the distance to a future home!

The Pros and Cons of Waiting Out the Hot Housing Market

The Pros and Cons of Waiting Out  the Hot Housing Market

Just as the pandemic put a temporary damper on the housing market, so too did the jump in mortgage rates. But just as the economic shut down didn’t have a lasting effect on the market, neither will this increase in mortgage rates. And the reason is the same – very little inventory. There are still more Buyers than Sellers and that is driving the market right now.

Despite the slight increases in interest rates, and decreases in inventory, it doesn’t necessarily mean the market is going down. Because Builders have not built enough housing and interest rates remain relatively low, it is thought that the industry might slow, but not fall.

Waiting can be a gamble in this game of real estate. Even if you wait to purchase with the thought that prices could be coming down, if rates increase it will all be for nothing. And renting will not be a cheaper option in the long run.

The market is stable. It hasn’t been driven by Investors, Flippers, and bad mortgages, but by legitimate Buyers. While demand may slow down eventually, there are no signs of prices going down anytime soon.

If you need a loan fast or have not qualified for a conventional loan, consider a privately funded mortgage through Sun Pacific Mortgage. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com if you are purchasing or refinancing in California.

 

Unique Loans for Investment and Business Purpose!

Promo 5 copyWe’re Direct Lenders – The Guys In The White Hats

Take advantage of our Private Money Programs if you are in need of FAST financing.  We can also help if their debt-to-income ratio is too high or you’ve been turned down by another lender for any reason.

We’ve funded many loans in less than 1 week. No credit requirements. And with over 34 years in business, we’ve helped thousands of individuals get the financing they wanted!

Recently Funded Investment & Business Purpose

 

Screen Shot 2022 05 16 at 10.08.41 AMGive us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to see what our Private Money Loan Programs can do to help!

HOT Financing – Lower Rates From Us

HOT Financing - Lower Rates From UsOur Hot Private Money Program

Are you just short of qualifying for your traditional “A-paper” loan for a refinance or purchase? Let our HOT Alt-A Private Money loan program help!

FAST approvals and fundings – even when turned down elsewhere!  Check out a recent scenario below:

Loan of the Week

Program: Business Purpose Refinance
Loan Size: $950,000
Days To Fund: 12 days
Location: Los Angeles County
Reason Came To Us: Debt to income ratios too high so her conventional Broker brought her to us. This Borrower was looking to get cash out of her primary residency to further expand her business. This was no problem for us!  With good LTV and credit, we were rapidly able to get her loan done.

If you are trying to refinance or purchase but don’t qualify for a conventional loan just yet – let us help!  We have this HOT Alt-A Private Money loan program with lower rates, so call us at 707-523-2099 or visit our website at www.sunpacificmortgage.com and we’ll quickly get back to you.

Why is the Housing Supply So Low?

Why is the Housing Supply So Low?
At the top of the question list for Buyers last year and this year is, “Why is it so hard to find a house to buy?”  Simply stated:  The number of Buyers greatly outstrips the homes available for sale. There are two main reasons the housing supply is low and what it may mean for you:

  1. New home construction fell behind for the past five decades except for 2008. Builders exceeded the average of new homes during these years of the housing bubble. As a result, an oversupply of homes caused home values to decline. That was one of the factors that led to the housing crash in 2008. Since then, the level of new home construction has fallen off, and for the last 13 straight years, Builders haven’t been able to construct enough homes to meet the demand.
  2. When the pandemic hit, the meaning of “home” became even more appreciated. With work and school moving into homes, there was a rush to find suitable housing for all the new activities happening in a sometimes- too- small space. At the same time, Sellers hesitated to put their homes on the market because of concerns about the pandemic. Not to forget mortgage rates dropping to the lowest seen in decades, adding to the urgency to buy now.

Even today, Buyers find themselves looking at scant inventory and higher prices. Offers exceed listing prices by a considerable margin. Basically, inventory is still low. Still, you shouldn’t put your plans to buy on hold because you are waiting for additional houses to hit the market. With prices continuing to rise and construction materials becoming ever harder to obtain, that could end up being a longer wait than makes sense.

If you need a loan today but can’t meet the stiffer qualifications of a conventional loan, give Sun Pacific Mortgage a call at 707-523-2099 or email us through our website at www.sunpacificmortgage.com, to discuss a Private Money loan mortgage. We have helped thousands of Californians over the past 34 years to purchase or refinance their own residence or a rental property. We can make your offer look better than others with a fast, all-cash close, often closing in 1 week to 1 month!

Making It Easier for Home Loans – Direct Financing

Making It Easier for Home Loans - Direct FinancingHome Loans Made Easy with Private Money

Have you or someone you know been turned down for a loan at the last minute?

We specialize in providing direct and fast financing for Owner Occupied/Primary Residences as well as Investment Properties. Credit issues, difficult-to-prove income, property doesn’t qualify – not a problem with us!  See recent examples below:

Recently FundedIf you, or someone you know, has been turned down by another lending institution, we can work with you to help get a fast Private Money loan!  Visit our website at www.sunpacificmortgage.com or give us a call to 707-523-2099.  We’ll quickly let you know what we can do to help.

What Will the Housing Market Look Like as the Rates Rise?

What Will the Housing Market Look Like as the Rates Rise?

The short answer to this persistent question is, “Nobody knows.”  This statement comes from Edward Seller, Associate Vice President for Housing Economics at the Mortgage Bankers Association.

So, where does that leave the everyday Homebuyer with rents soaring faster and steeper than mortgages? One Redfin Realtor said that she hears people are more worried about the stock market, rather than mortgage rates because they believe housing will be a better investment. Many Buyers see that the time is right for going all-out in bidding for scarce housing right now before it gets worse.

This anxiety regarding the unpredictability of rising rates explains the reason the housing market has not cooled yet and explains the surge in Buyers trying to get ahead of those higher rates now.

But do you keep getting turned away by other Lenders? Sun Pacific Mortgage has the answer with our Private Money loan programs: home or land purchases, refinancing, and bridge loans for business or commercial purposes. We have hundreds of Real Estate Investors who can finance your housing loans even if you do not qualify for conventional lending. Even poor credit, bankruptcy and less-than-perfect properties are not show-stoppers for our mortgage qualifications. Give us a call at 707-523-2099 or visit our website at www.sunpacificmortgage.com to discover a possible road to homeownership for you in these unpredictable times.

 

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