There are very few Hard Money companies that do Owner Occupied, both Business and Consumer Purpose loans, but we do. The distinction between these programs is based on Federal and State guidelines.
Since 1988, we have provided 2 different programs for business purpose and consumer purpose loans on Owner Occupied properties:
A 12-month short term or a 15-year long term. The short term is for Borrowers who have an exit strategy within the 12-month term and long term if there is no such strategy.
Do the Rules Change for Owner-Occupied Loans?
First, what is an Owner-Occupied loan? This is a type of loan with various terms, depending on the Lender, offered based on the occupancy status of the property. An owner-occupied loan is a loan on the residence the borrower will live in primarily. However, such a loan would also apply to a secondary residence, which is occupied only a portion of the year.
Who Can Take Out an Owner-Occupied Loan?
This is one loan that relies heavily on the Loan to value (LTV: loan amount compared to property value). Sun Pacific Mortgage can lend up to 70% of the value, as determined by the property’s condition and Borrower qualifications.
This type of loan is quite beneficial to those with difficult to prove income, such as self-employed individuals; persons with foreclosures, short sales or even a bankruptcy; property condition does not qualify for conventional or traditional loan regulations; borrower’s credit is bad or poor resulting in them being turned down for a home loan elsewhere.
Who Does Owner-Occupied Hard Money Loans?
The number of hard money lenders who offer owner-occupied loans has decreased significantly due to the stringent regulations imposed by the government. Regulations at both the federal and state level keep brokers from offering these loans because of the work involved. These loans require additional regulatory licensing that some lenders do not want to obtain. However, Sun Pacific Mortgage recognizes the vital need for this type of loan and will continue to offer this program.
If you would like to explore the possibility of a hard money loan for an owner-occupied residence, Sun Pacific Mortgage has many years of experience helping clients achieve their dream-home. Give us a call today or email us through our website form below and see what we can do for you!
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California Real Estate financing only. Minimum loan amount starts at $175,000.