Assuming you have enough equity in your home, accessing it to pay off much higher consumer debt is a viable and cheaper alternative.  Paying off high-interest credit cards or high-rate loans with a lower-interest home loan makes sense for many borrowers. However, as with any choice, there are Pros and Cons to be considered.  Let’s look at each:

Pros:

• You will have one payment instead of many smaller credit card payments.
• You will know when your debt will be paid off.
• Even with a hard money loan, your interest rate will be lower.
• Your interest rate will remain stable throughout the life of the loan.
• Hard money loans can be obtained in less than 30 days.

Cons:

• Your home becomes collateral.
• You want to know the lender fees and closing costs associated with a new home loan.
• If you do not stop using your credit cards (or have a more efficient way of tracking use and monthly paying them down) you run the risk of falling back into debt again. 

Bottom Line:

Even if your credit score is “in the tank”, Sun Pacific Mortgage, a reputable hard money lender in California for 30+ years, can offer you a solution to improve your financial health.  

We make our decision regarding credit worthiness based on your ability to pay back the loan and the amount of equity in the real estate being used as collateral.  Give us a call at 707-523-2099 to discuss your situation and possible solution to high interest consumer credit.

Sure, there was a time when hard money lenders might have been viewed as predators, but these business owners have always been in the minority and have never lasted long.  Sun Pacific Mortgage has been in the hard money business for 31 years. You don’t survive and prosper without a loyal following of investors and clients won by demonstrating integrity and transparency.   

Hard money lenders are a solid source of funding for all real estate investments that fall short of conventional lending requirements.  Here are some of the facts experts might not share with you regarding hard money.

• Hard Money Is a Legitimate Business  

Hard money lenders are actual businesspeople. They are no different than a bank, because essentially, they lend money.  Hard money lending is a legitimate business, not some underworld operation. With hard money, you eliminate much of the bureaucracy that is involved with a bank.  With hard money lenders, it’s just you, your deal, and the judgment of the lender to determine your ability to repay the loan.

• Hard Money Just Means the Loan Is Backed by a Real Asset

The word “hard” just means “asset”.  When you borrow money from a hard money lender, he secures his interest with collateral, in our case, that is real estate.

• Hard Money Equals Significant Profits for Investors

Without a doubt, hard money lenders do charge higher than average rates.  The rates at Sun Pacific Mortgage can run between 9-14% depending on several factors, including the property and the borrower’s situation.  Because investors are taking a risk with their money, they need to protect themselves, thus the higher rate.

• Legitimate Businesses Use Hard Money Also

Just because a business may not be able to get a loan from a bank does not mean they are not “bank-worthy”.  The strict guidelines that govern banks and other lending institutions may be a stumbling block to small business owners.  Hard money can be obtained through programs available at Sun Pacific Mortgage allowing business purpose loans to be borrowed against real estate investments.

• Hard Money Lenders Won’t Finance 100% of the Loan

When you have “skin in the game” lenders know their interests and yours are protected.  Neither of you want to lose your money. Most lenders like to see at least 70% LTV (Loan to Value) in any loan they make.

Bottom Line:  Hard Money Lenders have been around for many years, and the less than honest ones don’t last long.  You can be sure that Sun Pacific Mortgage, a family owned and operated hard money business with 31 years and thousands of happy clients and investors is one of the “good guys” that can be trusted to perform as promised.