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Hard Money Loan Tutorial

approvedWhen you apply for a conventional loan, Lenders are very interested in your credit scores and your income.  If you have a solid history of repaying your debts and your debt to income ratio is acceptable, you will be approved for the loan.

Applying for this type of loan can be an unpleasant experience.  The process can be painfully slow, and, if you have negative items on your credit report or your income is difficult to prove, you might never get approved.

Hard Money Lenders approach the lending business from a different angle.  We are more concerned with the collateral securing the loan.  The property values are more important than a negative on your credit report. Generally, hard money loans are short-term loans lasting one to five years.  In many cases this gives the borrower time to qualify for a conventional loan at a better interest rate.

Why Use Hard Money?

Some of the more significant benefits of using a hard money loan are:

Speed:  Hard Money Lenders are more concerned with collateral and, therefore, are less likely to allow credit issues to hold up the process.

Flexibility:  Hard Money Lenders evaluate each deal individually and are not subject to the very regulated underwriting process.  Individual Lenders are able to tweak a deal to make it more acceptable to the Borrower.

Approval:  As long as a Lender is confident that the property values are good and this would allow one of his Private Investors to quickly recoup their money, should the Borrower default, approvals are much easier to obtain than conventional loans.

When Does Hard Money Make Sense?

Difficultly proving income and loans requiring a fast close are examples of problems that can be solved by a hard money loan. This type of financing is also beneficial for short term loans such as fix-and-flips or when a Bridge Loan is the only way to secure a property before selling another property.  

If you are considering a hard money loan, Sun Pacific Mortgage would be happy to help!  Call us at 707-523-2099 and within just a couple of minutes we can prequalify you.

Property Refinance in Mountain View California


A local Mountain View realtor referred his home buyer to me after they had exhausted conventional loan programs. I immediately called the buyers and got them preapproved.

Because the Buyers were combining households, their debt did not qualify them for a 30 year jumbo fixed rate bank loan. They had found a dream home in Mountain View they had to have, and they were able to come up with a decent down payment.  Unfortunately due to debt, they could not qualify for a conventional loan.  This is where we came in! 

Sun Pacific Mortgage was able to fund this home loan of $555,000 for 12 months and close this deal on time.

Their real estate agent was very pleased because it happened so quickly and smoothly and, of course, the Buyers were equally excited to accomplish the purchase of their dream property in Mountain View!

Visit our Mountain View location’s website here: http://www.mountainviewhardmoneylending.com/

If you are a Real Estate Agent with a similar scenario, give us a call at 707-523-2099. See how we can help you rescue a loan turned down elsewhere!

Happy Saint Patrick’s Day! 


We feel so lucky to have discovered Sun Pacific Mortgage…

“I was literally crying tears of joy for an hour straight. So excited to get back on track! None of this would have been possible without Sun Pacific’s help and genuine concern. We truly cannot thank you enough!” C& S

 “Forest and Ken are stable and reliable lenders who will always go the extra mile to ensure that you get the best possible value of service from their company while still adding the flair of fun into the mix!”  C.C.

 “The entire family and staff at Sun Pacific Mortgage are the best hands down.  They are honest, direct, professional, quick, efficient and realistic.  We were able to move into a home of our dreams because God allowed us to come across this awesome business!  It’s like when everyone else seemed to be against, us, Sun Pacific found a way to make things happen.  We cannot thank them enough!” L.W.

“Forest is an extremely knowledgeable real estate broker and loan officer with decades of experience. He really cares about his clients and wants them to get the home and loan they want, efficiently and with the lowest stress possible. I would hire him again, without hesitation, for my next home buying experience.” K.E.

“Ken is a go-to lender in my book. If you need it DONE go with him.” C.M.

Call us today at 707-523-2099 with any questions or scenarios and we would be happy to let you know how we can help!

Deal Of The Month – Superhero To The Rescue

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Rush Purchase in Healdsburg, Sonoma County

A past borrower of ours called me a couple of weeks ago, asking if I could help save her deal.  Unfortunately, it was about to fall out of Escrow due to a last minute hiccup by her conventional Lender. She was desperate, needing the money in less than 2 weeks.

She was trying to purchase an investment property in Healdsburg and needed 580K for a loan to value of 80%.  I got to work and just 7 days later she got her loan from us and could close on the rental she wanted!

Hard Money loans can be superheroes for those scenarios not quite fitting  conventional lending criteria. Some reasons could be due to poor credit, fast financing needed, property condition, etc. Such loans have speed, flexibility and strength in purchase offers and refinances.

Call us at Sun Pacific Mortgage 707-523-2099 and we will let you know how we can be the Superhero you need.

Property Refinance in Santa Clara, California

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Property Refinance in Santa Clara, California

I work with many loan Brokers and Realtors.  One of my Brokers called with a transaction he needed to get done for a borrower on a rental property refinance. The clients needed a $770,000 first mortgage at 10% interest only for 2 years – and it was needed quickly as they had to close escrow on a new purchase of a multifamily property.

This Broker is a true professional.  He had already spoken with the clients and had all of the documentation he knew was required for loan approval, which he then forwarded to me.

Within 19 days all transactions were completed – the refinance and the new multifamily purchase!  A very happy home owner indeed.

To be successful, Hard Money loans must be  have speed and flexibility.  In this type of market, with multiple offers, borrowers can benefit from hard money as it fulfills a very real need in real estate buying these days.

Our Santa Clara location’s website can be found here: http://www.santaclarahardmoneylenders.com/

What Is a Bridge Loan – And How Is It Beneficial?


Real estate agents, investors, home buyers and home sellers are always interested in utilizing smart home buying strategies.

A bridge loan is a type of creative financing that falls into the category of “smart home buying strategies”.  It is a short term loan, 12 to 18 months only.  It gets paid off with longer-term financing sometime in the near future,  or from the sale of the property.  As the name implies,  it  provides a bridge from one transaction to the next.

The Benefits:

#1. A Bridge loan is sometimes considered a cash purchase by Listing Agents.

#2. The Buyer does not need a contingency clause in the purchase offer of their new    home.

#3.  A home owner can buy a new house now and sell their present home later.

#4. There is no fear of losing their dream home because they have not sold their present home.

#5. Your buyer can buy a fixer, renovate it and have their dream home.  Hard money bridge loans are often the solution for less than perfect properties.

#6. Speed.  These loans can usually close in less than a week.

The Requirements:

  • It must be a 12 month loan.
  • There will be 3 months of guaranteed interest minimally.
  • 20% down payment required on a purchase.
  • On a refinance there must be lendable equity.


The Uses:

Typically, bridge loans are sought when another sale is pending and the funds are needed to close the final deal.   At other times,  a buyer may be in a “fire sale” situation,  where the seller on the other end of the transaction must close a deal within a specified period of time.

Some instances when you might use a Bridge Loan are:

  • Pulling some cash out of the equity in your current home to secure a down payment to purchase another home. This allows you more time to sell your present home.
  • Refinancing the property you are selling to pay cash for the new home.


The Costs:

Rates and costs for Bridge Loans can vary by Lender.   Rates range between *9-12% and are usually interest only.  Rates depend on the amount of the down payment so the bigger the down, the lower the interest rate.

How We Can Help You:

We are licensed for the state of California and have been in business for 29 years.

Call our office at 707-523-2099 and within just a few minutes, we can let you know what we can do for you!


We hope this has helped you understand more about what a Bridge loan is and how we can be of assistance.

Don’t Let The Doom & Gloom of The Weather Get You Down

superhero men

Let the Superheroes of “Not-Normal” loans raise  your spirits and increase your success rate!  We think outside the box to help you get those less than perfect real estate deals done.

In today’s competitive market, one needs to be creative .  Home buyers need stronger offers and home sellers need more options.  The Superheroes of Sun Pacific Mortgage are here to provide you with the hard money loans your clients are seeking so everyone comes out a winner.

In 2016 Superhero Forest and Superhero Ken funded 235 Hard Money loans, both purchases and refinances, averaging 20 days to funding.  These loans included a mix of owner occupied residences, rental/investment properties, Bridge and Temporary loans, as well as land and small commercial loans.

We hope our “Not-so-Normal” loan programs can help you achieve your clients’ goals of home ownership or investment growth.  We have only two main qualifications for these loans:

#1. Decent existing equity or at least 20% down payment and
#2. An ability to repay the loan (source of income).

Call Us Today at 707-523-2099 or email us back with your scenarios and we’ll let you know how we can help!

How Strict Has Mortgage Lending Become?

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There is a general belief today that lending requirements have become so restrictive that many lower-credit borrowers are dropping out of the mortgage market.

The Home Mortgage Disclosure Act data discloses that 33% of all applicants in 2015 were in the lower-credit category compared to 62% in 2006 and 50% in 2000 – when the market was judged to be balanced.

The decline in lower-credit applicants is clearly problematic and a symptom of an overly-tight mortgage market.  Are would-be applicants holding back because they are afraid they might not qualify? Or for some other reason, such as the condition of the property?    

A hard money loan might be the answer for those who have less than stellar credit and would not qualify for a conventional loan.  This option can provide an avenue to enter the real estate market when it appears that all hope has been lost.  

Here at Sun Pacific Mortgage make it our goal to find a way to make home ownership possible when chances look slim to none.  Don’t give up on your dream of home ownership.  Please call us at 707-523-2099 and see how we can help you with a hard money loan.

Bridging The Gap For Sellers To Become Happy Home Buyers

Presidents Day Promo with stop watch

Lack of inventory has real estate a bit muddled at the moment.  However, with bridge loans and short term loans, real estate activity can be increased and benefit those Home Owners who do want to sell.

● This type of financing removes the stress of having to get into contract on a new home before one sells their current house.

● Purchase offers can be extra strong as the financing required to buy a new home is available, no longer requiring a contingency of one’s current house to be sold.

In 2016 our company funded 235 Hard Money loans. It was a good mix of owner occupied loans, rental property loans, Bridge loans, Temporary Loans, small Commercial Loans and Land Loans. We took an average of 20 days to fund a loan, with our fastest funding in 3 days! January 2017 marked the 29th Anniversary of our family company doing home loans.

We continue to stand ready to help you, a client or someone you know bridge the gap between a current home and a new future home with our alternative finance programs.  Call us today at 707-523-2099!

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

Recently Funded Bridge and Temporary Loans – Done to fill the gap:

Petaluma, California (Sonoma County)
Loan Amount:$660,000
Days To Fund: 7 days
Loan To Value: 75%
Why Turned Down Elsewhere: Needed a fast loan for a purchase.

San Francisco, California (San Francisco County)
Loan Amount:$420,000
Days To Fund: 11 days
Loan To Value: 72%
Why Turned Down Elsewhere: Needed a fast, short term loan.

Bolinas, California (Marin County)
Loan Amount:$490,000
Days To Fund: 17 days
Loan To Value: 64%
Why Turned Down Elsewhere: Had a bankruptcy

Pioneer, California (Amador County)
Loan Amount:$1.5 mil
Days To Fund: 20 days
Loan To Value: 50%
Why Turned Down Elsewhere: FICO score not good enough.

Cloverdale, California (Sonoma County)
Loan Amount:$235,000
Days To Fund: 14 days
Loan To Value: 63%
Why Turned Down Elsewhere: Property condition was poor.

Useful Investment and Real Estate Apps & Websites


The internet has spawned several helpful apps for anyone involved in the real estate world.  I found some to be especially helpful, both in locating and in evaluating possible investment properties.  Below are some of the more notable ones:

  1. Bigger Pockets

This app contains searchable forums where most every question that you can think of has been answered regarding real estate investing.  It is also a great place to meet other investors in your area.

  1. Zillow; Realtor.com; Trulia; Redfin

Zillow, Realtor.com, Trulia and Redfin are great sources to see what properties are for sale or sold in a particular geographical area so that you can better determine the value of a potential investment.

  1. Hammer Point

With this app you can estimate the entire cost of your remodel or repair before  spending your first dime.  A very valuable tool which will help you with the various aspects of your project.

  1. Homesnap

This is an invaluable tool.  With this app you can take a picture of a property and it will give you the address, estimated value, local demographics and more.  Simply take a picture and drive on.   All the details are in your phone for later download.

I hope these resources will prove helpful in better time management and productivity as you pursue your investment goals for 2017.

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