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Get Ahead With The Housing Boom In The Bay Area

November 22, 2016

The-Housing-Boom-A-Tale-Of-Two-Markets

According to the LMI score (Leading Market Index) economic and housing activity is currently at 98% of its normal level. But for those consumers left behind because of stringent conventional lending regulations, there are Hard Money loans that can allow them to take advantage the real estate boom.

Whether you have an opportunity to enter the real estate market for the first time or to add to a retirement portfolio  by acquiring a rental,  Hard Money loans offer a way to increase our assets and take advantage of this booming real estate market.

With no loan or appraisal contingencies, quick closings and fewer concerns about property condition, Hard Money loans offer both the buyer and the seller reasons to consider the leap into this otherwise unattainable  financial opportunity.

A recent article from Pacific Union (see link below) explains how affordability has improved in seven of the nine Bay Area counties in the last quarter.  Conditions were unchanged in the third quarter in Napa and Solano counties.  Solano and Contra Costa are two Bay Area counties are more affordable than the statewide average.   San Francisco and San Mateo counties however, remain in the higher-end of median home prices and what with the increasing tech companies in the area, this real estate is more and more coveted.  Real estate in Marin and Santa Clara counties equally remained highly valued.  The moral of the story is, one must know how to make the stronger offer to get the home or property they want because the market is so hot and there is no sign of it slowing down.

We at Sun Pacific Mortgage and Real Estate, are a family owned and operated Hard Money Lending Company that has been in business for almost 30 years  and we offer alternative financing throughout the state of California.

Call us at 707-523-2099 with any questions or scenarios and we  will be happy to help!

Pacific Union full article here:

http://blog.pacificunion.com/housing-affordability-improves-in-7-bay-area-counties-in-third-quarter/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+pacunionblog+%28Pacific+Union+Blog%29

What Are The Differences Between A Traditional Loan And A Hard Money Loan?

November 17, 2016

 

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If you have ever applied for a mortgage with a bank, you know it can be a long and sometimes difficult loan process. It seems traditional lenders want an inordinate amount of information from you.

General loan requirements include your loan applications, minimum credit scores, bank statements, income verifications, borrower and property financials, etc., etc. etc.

Once you think you have satisfied all of the bank’s requests, they come up with a new one as well as additional conditions for approval!  Even if you meet all of the traditional lender’s strict lending requirements, the process can still feel exhausting.

In contrast, when you apply for a real estate loan with a hard money lender, the loan process is overall more streamlined and efficient.  Hard money loans require less paperwork and third party reports. This is a welcome change for those who don’t want to be burdened with a lengthy loan process or don’t have the credit scores or lengthy financial records to qualify for a traditional loan.  Such loans are ideal for borrowers who don’t qualify for a mortgage under traditional lender requirements or for those properties requiring some fixing as they don’t qualify for a bank loan.

General hard money borrowing requirements are considerably looser than conventional financing.  As the risk is greater for the private investor, rates are generally higher and the borrower is required to come in with 20-30% equity or down payment if a purchase.

Here at Sun Pacific Mortgage we have 2 main loan qualifications:

#1. Decent equity for a refinance or at least 25% down payment on a purchase and  

#2. An ability to repay the loan.  

If you are thinking of refinancing or purchasing property and are having difficulty at a bank or other Lending institution, then give us a call at 707-523-2099!

Is A Private Money Loan Considered Cash?

November 15, 2016

 

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A private money loan is basically considered a cash sale by the Seller, making the possibilities of closing the deal more certain.  The offer is still considered a loan, but it comes with several benefits that both parties will appreciate:

1. No loan contingencies, since the borrower and property have been fully vetted before you write the offer.

2. No appraisal contingencies.  Although the borrower can order one, the offer is not dependent on the outcome, since most private money loans require a sizable down payment.

3. Quick closing.  Private money loans have been known to close in a much shorter period of time than traditional lenders and banks.  It is reasonable to close in 10-15 days as opposed to a month or longer.

4. Property condition is not as great a concern.  Less than pristine properties are easier to purchase with private money since this type of loan is considered “all cash” and is based against equity or loan to value.

Private money, also known as hard money loans, can be a viable option in the real estate financial world and are of considerable interest to Borrowers, Sellers and Investors today.

If you or someone you know is interested in getting such a loan or have further questions, call me at 707-523-2099 and I’d be happy to help!

The Latest Trend for Pension Funds: Private Equity Investment

November 8, 2016

Recently it has become increasingly clear that private equity is an attractive option for pension funds. Because the ultimate question in any investment decision, big or small, is the return on money, Investors are turning to private equity funds to bolster their portfolios.

The More Time, The More Money.

After the lean years that followed the 2008-2009 financial crises, the performance of private equity funds has started to outpace the market.  Contributing to the interest in this type of investment is the volatility of other public and private markets.  Private equity is not subject to the same daily volatility of other investment options, such as the stock market, from emotional reactions and headlines.

When you consider the investment goals of the typical pension fund investor, long-term capital appreciation is at the top of the list.  You won’t find the fluctuations of the bond and equity markets in private investments, making this option a far better place to entrust your funds.  The private equity industry has matured and become more diverse in recent years making it a viable option for Investors looking to grow their finances.

My family owned and operated Hard Money Company has been in business since 1988.  If you have any interest in investing in California trust deeds, then call our office at 707-523-2099 as we regularly have these available.

 

Hard Money Loan of the Month – November

November 7, 2016

Broker-Touchdown

By Broker, Lead Loan Originator

Just the other week a couple called needing a loan to buy their houses out of a Family Trust.  There were family disputes occurring and this needed to occur fast otherwise they would be forced to sell the houses.

They were unable to get a conventional loan due to unpaid tax liens against their businesses and difficult to prove income due to being self employed.

The loan amount needed was $475,000 against two separate properties in Sebastopol, California.

Within five days all needed items were received and we had loan approval!  As this was a low loan-to-value (40%) we were able to get this approved with an interest rate of only 8% (hard money averages 9-12% interest).

We specialize in loans that have been turned down elsewhere and one of our favorite mottos is “If we say it can be done, we’ll get it done!”

Call our office at 707-523-2099 if you need some creative financing help for your real estate purchase or refinance.

Be Prepared For Seasonal Changes In The Market!

November 3, 2016

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Our loan preapproval process is based primarily on 2 things:

  1. Loan to value and
  2. Ability to repay (far more flexible than conventional underwriting)

 

We loan up to 75% of the value of the property and in some instances as high as 80%.  We do Jumbo Loans commonly.

Below are some recently funded loans for a better idea of how we can help you or a friend. Call us today at (707) 523-2099 or drop us an email with any questions or scenarios!

Recently Funded:

Santa Rosa, California (Sonoma County)
Loan Program: Owner Occupied Purchase Bridge
Loan Amount: $261,000
Days To Fund: 14 days
Why Turned Down Elsewhere: Difficult to prove income

Oakland, California (Alameda County)
Loan Program: Non-Owner Refinance
Loan Amount: $805,000
Days To Fund: 19 days
Why Turned Down Elsewhere: Owned many investment properties

Sebastopol, California (Sonoma County)
Loan Program: Owner Occupied Refinance
Loan Amount: $555,000
Days To Fund: 25 days
Why Turned Down Elsewhere: Property a fixer

Novato, California (Marin County)
Loan Program: Investment Property Purchase
Loan Amount: $420,000
Days To Fund: 15 days
Why Turned Down Elsewhere: Had a Bankruptcy

Napa, California (Napa County)
Loan Program: Owner Occupied Business Purpos
Loan Amount: $215,000
Days To Fund: 6 days
Why Turned Down Elsewhere: Couldn’t get financing for a new home while having an existing mortgage on old home.

Garberville, California (Humboldt County)
Loan Program: Commercial Property Purchase
Loan Amount: $415,000
Days To Fund: 29 days
Why Turned Down Elsewhere: FICO score had issues

What Credit Score Is Needed To Buy A Home?

October 28, 2016

Many potential home buyers believe that they need a score over 780 to qualify.  In today’s world, this is no longer true.

One of the more common misconceptions keeping potential home buyers from beginning their search has been the fear that their credit score is too low.

According to a recent study by The Wharton School of Business, the good news is that over 50% of all approved loans had a FICO Score under 750.

Taken from a recent KCM blog post (full article link below), this depicts nicely what the real scoop is:

Below is a breakdown of the FICO Score Distribution of all closed (approved) loans in August from Ellie Mae’s latest Origination Report.

Fico

The chart above illustrates the point that low credit scores are not a reason to avoid seeking a mortgage.  More than half of all loans in August were awarded to individuals with credit scores as low as 600.

At Sun Pacific Mortgage we welcome not only low credit scores, but bankruptcies, imperfect properties, difficult-to-prove income and a host of other issues that the conventional lender won’t consider.  We finance jumbo loans, bridge and short term loans, owner occupied purchases and refinances, investment purchases, commercial and land.

Call today with any questions or scenarios and we’d be happy to help!

(707) 523-2099

 

Original Keeping Current Matters blog link:  http://www.keepingcurrentmatters.com/2016/10/17/dont-disqualify-yourself-over-half-of-all-loans-approved-have-a-fico-score-under-750/

Hate Turning a Borrower Down?

October 20, 2016

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We get loans brokered or referred to us by mortgage professionals who had to tell the borrower “no” for whatever reason. Most that call us need quick action and approval – because they are running out of time. You actually do want to help – and have had underwriting fail you.

Sun Pacific Mortgage is uniquely qualified in that our underwriting is based on 2 things – loan to value and ability to repay. Even our “ability to repay” is far more flexible than conventional underwriting.

We loan up to 75% of the value of the property and in some instances as high as 80%. We do Jumbo Loans commonly

Call us today at (707) 523-2099.

Scary Loan Rescued for a Local Real Estate Agent’s Home Buyer

October 5, 2016

 

Halloween-For-Sale-House

Scary Loan Rescued for a Local Real Estate Agent’s Home Buyer

A local Sonoma County realtor referred his Home Buyer to me after being  reminded about our Hard Money program by another busy Agent. 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 Sebastopol 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 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 Sebastopol!

If you are looking for a loan in areas such as Santa Rosa, Napa, San Jose, San Francisco, Sonoma County, Rohnert Park, or anywhere in Northern California or Southern California, give us a call to learn more about how our Hard Money programs can help you! (707) 523-2099

Dislike Your Buyers Loan Being Turned Down – Again?

September 26, 2016

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We have helped rescue multitudes of turned down loans. Consequently, unhappy Home Buyers became very happy and thankful to the Agent or Broker who referred them to us.  

Sun Pacific Mortgage is uniquely qualified in that our underwriting is based on 2 things – loan to value and ability to repay.  Even our “ability to repay” is far more flexible than conventional underwriting.

We loan up to 70% of the value of the property and in some instances as high as 75%.  We do Jumbo Loans commonly.

See the below recently funded loans for a better idea of how we can help. Call us today at (707) 523-2099 or drop us an email with any questions or scenarios!

The Funded Loans Below Were All Turned Down Elsewhere:

Sea Ranch, California (Sonoma County)
Loan Program: Investment Property Purchase
Loan Amount: $245,000
Days To Fund: 5 days
Why Turned Down Elsewhere: Had FICO issues due to medical bills

 

Sunnyvale, California (Santa Clara County)
Loan Program: Investment Property Refinance
Loan Amount: $1,130,000
Days To Fund: 11 days
Why Turned Down Elsewhere: Owned “too many” properties

 

Guerneville, California (Sonoma County)
Loan Program: Owner Occupied Purchase Temporary
Loan Amount: $165,000
Days To Fund: 15 days
Why Turned Down Elsewhere: Property needed fixing

 

Indian Wells, California (Riverside County)
Loan Program: Land Loan Refinance
Loan Amount: $800,000
Days to fund: 11 days
Why Turned Down Elsewhere: Due to new employment didn’t have 2 years of taxes

 

North Highlands, California (Amador County)
Loan Program: Commercial Refinance
Loan Amount: $900,000
Days To Fund: 26 days
Why Turned Down Elsewhere: FICO was poor

 

Sebastopol, California (Sonoma County)
Loan Program: Owner Occupied Cash-Out Refinance
Loan Amount: $475,000
Days To Fund: 17
Why Turned Down Elsewhere: Had difficult to prove income, was self-employed

 

NOTE:  Get our financing despite credit score, difficult to prove income, need fast financing, property a fixer, etc.  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!

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