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What Is An Owner Occupied Hard Money Loan?


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.
  • Getting some cash out for debt consolidation.
  • Getting some cash out for a business purpose.

You can find out about our rates and fees by checking out the Rate Sheet: https://www.sunpacificmortgage.com/SPM_Programs_Rate_Sheet.pdf

Also feel free to call in to our office and within just a few minutes, we can let you know exactly what we can do for you: 707-523-2099.

What Makes a Hard Money Loan a Good Loan?

Hard Money loans are fantastic for short-term usage while investing in real estate. Depending on how it’s structured, a Hard Money loan can be available for as short as 3 months to as long as 5 years or longer. Traditional mortgage lending is often available for 10 years to up to 30 years. The real catch is when attempting to obtain a traditional mortgage on a distressed or vacant property.  It is extremely difficult to qualify and you will have a hard time finding a bank who will loan in this situation. Enter Hard Money.

sold house picHere’s a good example:

  • An investor finds a home they’d like to purchase for rental purposes
  • The home is distressed and in need of major repairs
  • A bank won’t lend on a property with significant problems affecting it’s value
  • This investor has two options:

  1. Get the loan from a family member or friend.
  2. Use a Hard Money loan to buy the property. The Hard Money loan can also be structured to cover the cost of the repair needed.
    • After the property has been fixed up and prepared for rental, the  investor can obtain a traditional mortgage at conventional rates to repay the Hard Money loan.

This is a great example of a short-term Hard Money loan used to purchase a rental property that otherwise would require an all cash offer.

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, call our office 707-523-2099!

It Is That Time of Year in Real Estate To Have Alternative Financing Readily Available

“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.

Best,
Ken and Forest, The Guys in the White Hats

P.S. We love referrals!

fk

 

Recently Funded:

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
Amount: $330,000
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
Amount: $333,000
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
Amount: $700,000
Days to fund: 35 days
Not Qualified Elsewhere: Bankruptcy in recent years

Willits, CA (Mendocino County)
Loan Type: Non-Owner Occupied Purchase
Amount: $2880,000
Days to fund: 17 days
Not Qualified Elsewhere: Property a fixer

Petaluma, CA (Sonoma County)
Loan Type: Primary Residence with Business Purpose
Amount: $275,000
Days to fund: 121days
Not Qualified Elsewhere: Self Employed, and credit issues

San Marcos, CA (San Diego County)
Loan Type: Owner Occupied Refinance
Amount: $316,000
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
Amount: $350,000
Days to fund: 26 days
Not Qualified Elsewhere: Divorce circumstances adversely affected credit score

Hard Money Loan of the Month – March

Rush Santa Rosa home loan rescued after being stalled by another Lender

This past month’s “Loan of the Month” is highlighted for a few reasons, the primary reason being the speed in which it arrived to my hard money office in Santa Rosa, and got approved to fund: 1 day!

homeThis principal residence home loan was a referral from a busy Sonoma County Realtor.  The Home Buyer had been pre-approved by another Lender but after 6 weeks, and still no loan approval, they had to do something else!

The principal Home Buyer was a recently widowed father of 2 children.  He had really good income as proven by his 2015 Fed taxes and a 5% down payment.  His Dad brought in additional collateral from his own house in Oregon for around another $100,000.   This collateralized property had average comps valued at $250,000 so brought in a loan to value of about 40%. That made it about 75% loan to value on a completely remodeled property in Santa Rosa, CA – which our Private Investors definitely can finance!

The Buyers Agent jumped through about a million hoops to make sure all items needed to process the loan came through in timely fashion.  She also made the Buyers perfectly comfortable with the Hard Money financing for their Santa Rosa purchase.

We sent out this First Deed of Trust for $470,000 for 12 months.  The purchase price was $495,000 for this home loan.  Combined loan to value was 95%.  We received this hard money loan request on January 26, 2016 and had full loan approval on the 27th!  The loan recorded on February 3rd.

End result was a very happy father, a happy family and relieved & happy Agents.

Recently Funded – We Can Do Big Deals

Not every Lender or Broker can fund Jumbo Loans nor can they rescue those troubled deals that just can’t seem to get loan approval.

Give us a shot and see how good we can be!

fkWe have seen an increase in larger size loans, also known as Jumbo Loans (greater than $417,000), and in speaking with other Brokers and Realtors, as well as Home Buyers, we have discovered a need for financing of such larger loans.

We can finance jumbo size loans, throughout Sonoma County, the Peninsula, all North Bay areas actually, central California, southern California and, honestly, anywhere in California! We have been a deal-saver more times than you may realize.

The following funded deals through our office hopefully give you an idea as to how we can help.

Recently Funded Transactions:

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!

Petaluma, CA (Sonoma County)
Loan Type: Bridge Loan for Primary Residence
Amount: $420,000
Days to fund: 24 days
Not Qualified Elsewhere: Needed fast loan to buy new home as still selling current
House

Monte Sereno, CA (Santa Clara County)
Loan Type: Refinance/Trust/Owner Occupied
Amount: $1,023,000
Days to fund: 29 days
Not Qualified Elsewhere: Self Employed, difficult to prove income

Santa Rosa, CA (Sonoma County)
Loan Type: Investment Property Refinance
Amount: $350,000
Days to fund: 16 days
Not Qualified Elsewhere: Owns multiple properties and credit issues

Cupertino, CA (Santa Clara County)
Loan Type: Refinance/Trust/Non-Owner Occupied
Amount: $700,000
Days to fund: 30 days
Not Qualified Elsewhere: Bankruptcy in recent years

Apple Valley, CA (San Bernardino County)
Loan Type: Primary Residence Purchase Temporary
Amount: $441,600
Days to fund: 19 days
Not Qualified Elsewhere: Self Employed, and credit issues

San Jose, CA (Santa Clara County)
Loan Type: Owner Occupied Business Purpose 2nd
Amount: $300,000
Days to fund: 22 days
Not Qualified Elsewhere: Condition of property, working to upgrade it

Nipomo, CA (San Luis Obispo County)
Loan Type: Refinance of Commercial Property
Amount: $400,000
Days to fund: 25 days
Not Qualified Elsewhere: Divorce circumstances adversely affected credit score

Click this link for our rate sheet, showing the programs we offer

Do You Prefer Experience Over Caring Service?

Honest and caring Brokers and Agents are important for any Buyer and Seller – for real estate and financial services.

A group of people holding up question marks in front of their faces.

The below noted KCM article reminded me of a first time Home Buyer I worked with, who was from out of town, and they told me that they had decided to go with our company because we were local and seemed personal.

What You Don’t Need To Hear From Your Listing Agent

By The KCM Crew February 9th, 2016

http://www.keepingcurrentmatters.com/2016/02/09/what-you-dont-need-to-hear-from-your-listing-agent/?utm_source=feedburner&utm_medium=email&utm_campaign=Blog_Promo

I of course thanked them for the compliment and mentioned that we were definitely experienced enough to help as we had just celebrated our 28th anniversary in business.  This particular home buyer was quite frank and said, “Well that’s nice, but to me I honestly picked your company foremost because of how it seems to care for it’s customers, based on all the testimonials I read. The experience is secondary, though also appreciated.”

I must admit that our customer service, being honest and just straight with each Home Buyer, Seller, Investor or other Agent has always been an important part of our family business.  However, it was more a “given” than it was a policy.  I realized after this particular client’s remarks that “caring” should not just be a “given” but a requirement for everyone, including the other affiliates, Brokers, Lenders and Agents we work with, in delivering service to all customers.

To some this might be normal but to many others, I’ve got to say that caring is not the top priority.  Well…it’s time to put the right “hat” on.

Do You Know What Is Best For Your Home Buyer or Seller?

Experienced real estate agents know they need to be familiar with the loan products out there for their buyers.Mortgage Loan Calculators

There are really only a few loan programs:

  • The government regulated (Fannie Mae/Freddie Mac, FHA, VA)
  • In-House loans (credit unions and local banks)
  • Alternative financing, also known as “Hard Money”

 

The biggest advantage to Hard Money is, not only can it be fast, it is treated as a cash offer in most circumstances, thus assisting in strengthening one’s purchase offer.  It can also be used to purchase or refinance a dump-property, bad credit borrower, irregular income borrower, large cash-out borrower, Bridge loans, jumbo loans, etc.

The government regulated loans such as FHA are quite regulated.  More in-house loans are being done by credit unions and banks and can appear stronger in offers, but they still come with tighter loan qualifications.  Hard money has 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.

When you call us, you get the Loan Officer and the Underwriter on the phone in one person.  Within just a few minutes we can tell if it is real estate that we can finance. Our transactions can go very fast because in many instances, we do not need an appraisal.

We invite you to look at our Website www.sunpacmortgage.com to get more insight into what Sun Pacific Mortgage is all about.  We have been in the business for over 28 yeas now and are family owned and operated.

We only do Hard Money and we do it right!

Give us a call at 707-523-2099 and see what we can do for you and your home buyers.

Get Your Hard Money Questions Answered Here….

Even the most experienced conventional Brokers and Lenders might not know what a hard money loan is and how it can be beneficial to you…or them.

I have lost count of how many Realtors, traditional Lenders, friends and acquaintances have asked me the same question: “What is hard money?”.

get clear on hard moneyWell, the article “Hard Money 101: Everything You Need To Know About Getting Started With Hard Money Loans”, posted by REtipster pretty much answers any question someone could have about hard money. Check it out:
http://retipster.com/hard-money-101-everything-need-know-getting-started-hard-money-loans/

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.

Hard Money Loan of the Month – April

Hard Money Loan of the Month
By Ken Walker, Lead Loan Originator at Sun Pacific Mortgage & Real Estate

75% Loan to Value rehab loan in Oakland, California

Last month a borrower called needing a short term loan on a distressed property in Oakland, which he wanted to fix up and sell (flip).

saveHe was in contract with a purchase price of $790,000, requesting a loan of $593,000 – a 75% loan to value loan for this distressed property in Oakland.

We got right to it and within 1 day, had loan approval with a 9.75% interest rate for a 3 year loan!

One of our favorite mottos has become, “If we say it can be done, we’ll get it done!”.

This Bay Area rehab loan was a win-win for all.

Our family owned and operated Hard Money financing company, Sun Pacific Mortgage & Real Estate has served all of California since 1988. We have become known as The Guys in the White Hats and we offer short term (1-5 years) hard money loans for residential, owner occupied and non-owner occupied (SFR and multi-units), as well as for some land and commercial real estate.

Our loan amounts range from $100,000 on up through jumbo size mortgages ($400K – $1,000,000+) and interest rates range from 8-12%, interest only.

Click here to learn more about our specific alternative finance programs and rates as well as see more funded loans.

Recently Funded – Here To Help In 2016!

Here’s to you kicking off a fantastic new year in real estate by taking advantage of our alternative financing for you or your clients!

guys

2015 marked another great year of Hard Money Loans from The Guys in the White Hats. January 2016 is our family company’s 28th year anniversary, serving all of California with our alternative finance programs!

This past year was very busy with many home buyers, home owners, Realtors and investors helped by our alternative financing programs, also known as hard money.

We recently expanded our family ranks and programs we offer, to be able to help even more people in this new year. (You can see our updated rate sheet below.)

We hope the following recently funded transactions through our office, give you a better idea as to how we can help you and/or your clients this year!

Best,
Forest & Ken, The Guys in the White Hats

P.S. We love referrals!

Recently Funded Transactions:

We finance Bridge and short term loans, Owner Occupied purchases and refinances, non-owner purchases for single and multiple units, commercial and some land. Get our financing despite credit score, self employed-difficult to prove income, need fast financing, property a fixer, etc!

Petaluma, CA
Loan Type: Owner Occupied Purchase
Amount: $420,000
Days to fund: 24 days
Reason needed: Credit score below 580

Apple Valley, CA
Loan Type: Owner Occupied Refinance
Amount: $341,600
Days to fund: 19 days
Reason needed: Self Employed with difficult to prove income

Santa Rosa, CA

Loan Type: Refinance of Non-Owner 2nd to handle a balloon payment
Amount: $377,000
Days to fund: 38 days
Reason needed: Had bankruptcy a couple of years back

San Anselmo, CA
Loan Type: Owner Occupied 2nd Business Purpose
Amount: $110,000
Days to fund: 15 days
Reason needed: Wanted to make improvements to the property

Penngrove, CA
Loan Type: Construction Non-Owner
Amount: $225,000
Days to fund: 25 days
Reason needed: Completing construction on a house

San Anselmo, CA
Loan Type: Bridge Loan
Amount: $235,000
Days to fund: 33 days
Reason needed: Wanted to buy another home while selling current one

Ukiah, CA
Loan Type: Commercial 2nd
Amount: $460,000
Days to fund: 21 days
Reason needed: Wanted to buy another piece of property

Click this link for our rate sheet, showing the programs we offer.

CALL TODAY, The Guys In The White Hats at
(707) 523-2099

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