With the Real Estate boom we have experienced over the past couple of years, there is an increasing demand for real estate investments financing. One type of financing for investment properties may come from a private lender, and just like with a traditional lender, the Borrower agrees on a set interest rate and timeframe that they will pay the loan back. With Private Lenders, rates are generally higher and the loan period is shorter. These loans are secured by the property’s equity and if the Borrower fails to make payments on time, just as with a traditional loan, the property can be foreclosed on, and the Lender takes possession.
In most cases, a Private Money Lender will focus more on the value of the property and its potential for returns, rather than the Borrower’s income and/or net worth.
Here are some aspects of borrowing Private Money, also known as Hard Money:
Hard Money loans are meant to be short-term, temporary financing. This may be necessary because the Borrower needs a fast close, has difficulty proving income, or has a less than desirable FICO score.
The interest rates vary depending on several factors: Loan To Value primarily then a bit relating to property condition, location, or risk.
Percentage points (fees to access funding) will vary but they are never up-front costs. These are how the Broker is paid.
Additional fees include: Escrow costs, appraisals, wire fees and other miscellaneous administrative fees.
When you are in need of a real estate loan, the following information will be required of you:
The Loan Application, also known as a 1003
Any signed Purchase Agreement or Copy of Mortgage statement
Sun Pacific Mortgage has been in the business of Private Money lending for 33+ years in California and has the expertise, plus knowledge needed to make your Borrowing experience less stressful. Give us a call at 707-523-2099 or visit our loan programs page to see what we can do for you.
We Fund Loans FAST! After 33 years of experience, we are specialists at FAST Private Money Mortgages. We’re here to help you, a family member or a friend get that fast home loan for the Holidays.
Loan of the Week
A Sonoma County Agent referred his Buyer to us after being turned down by her conventional Lender, 27 days into a 30-day Escrow. Despite being very qualified, this Buyer was turned down by Underwriting at the last-minute due to an issue with proof of income.
In just 5 days we had her owner-occupied Bridge Loan of 946k approved and funds ready for her new home purchase!
One of our specialties here at Sun Pacific Mortgage is fast turnarounds, so if you or someone you know is in need of fast financing or having difficulty elsewhere getting a mortgage, give us a call at 707-523-2099 or contact us through our website. We will quickly let you know what we can do to help!
Experience has left a lot of us shuddering when we hear about mortgages based on “stated income.” We remember the many Homeowners who fell into foreclosures and ended “upside down” in their mortgages largely because they were clearly unable to afford the mortgages they accepted.
Despite this, more recently one hears about the availability of “Stated Income” loans. These can have multiple meanings and here at Sun Pacific, we want to be clear how our “stated loans financing” works:
Stated income loans from Private Investors are considerably more stable and credit worthy than the ones of a decade or so ago. We just require something showing income: this could be a CPA letter, employer letter, paystub, lease agreements, 3 months of bank statements, etc. We also require proof that you, the Borrower, can repay the loan with income from available and stable source(s).
While other financial institutions require an excess of documentation to prove you do not exceed their debt-to-income ratios, need excess bank statements, tax return, etc. our company accepts a simple form of proof that verifies your ability to repay the proposed loan. We do not have set debt-to-income ratios like majority of the other traditional and conventional entities.
Not having to provide boatloads of documentation makes the entire lending process less cumbersome and allows the loan to move through approvals much faster. For this reason, one can state their income, provide proof of such income and we can then often close a loan in less than a week.
If this sounds like a solution to your concerns, give us a call at 707-523-2099 to discuss a loan for your needs. Or visit our loan program page for Stated Income Loans by clicking here.
Competition has been stiff over the past couple of years, prompting the need to make stronger initial purchase offers. Many of our Borrowers are looking for a solution that will allow them to purchase property before completing the sale of their existing home. The Bridge loan eliminates the need for any contingencies based on the sale of ones present home!
The Temp and Bridge loan programs also offer the use of equity, for assistance with a down payment on the new property. We have devised a program that allows a term of 11 months with no prepayment penalty. Rates primarily depend on Loan To Value.
If Private Money seems like a solution to your concerns about selling your home only to find you can’t find a replacement, give Sun Pacific Mortgage a call. With this program you can shop for your new house without the worries of your home selling in time.
We can be reached by phone at 707-523-2099 or by email through our website contact form: www.sunpacmortgage.com.
Private Mortgages offer FAST financing! Our private money programs can rescue your real estate purchase or refinance that may be falling through due to difficult to prove income, credit problems, property condition, etc.
Many Borrowers feel grateful for our private financing:
Loan of the Week
An Agent referred her Buyer to us for a needed refinance on their primary residence, as they were in contract to buy an Investment property in Santa Monica, but was turned down at the last moment by their conventional lender due to difficult to prove income as was self-employed.
As their primary home property was owned free and clear, providing a $710,000 loan amount was an easy private loan for us to get approved. Within 11 days it was funded, and both Buyer and referring Real Estate Agent were grateful that this loan hadn’t fallen through!
Don’t let your purchase or refinance fall through in this hot Real Estate market! Give us a call at 707-523-2099 or email back with any questions or scenarios. Or visit our website at www.sunpacificmortgage.com. We’ll be happy to get you a proposal on how we can help.
Another stellar month for San Francisco real estate in October. Despite all the naysayers’ predictions that the market was on its way down, all markers indicate a continued upward trend. Here are the results for last month’s single-family residence in San Francisco:
Average List Price: $2,093,971
Average Sales Price: $2,358,448 ($2,131,959 in Sept.)
Average Sq. Ft. Price: $1,093.37
Average D.O.M: 19
All Sold Properties: 709 (575 in Sept.)
SFR Sold: 303
36 below price
11 for listing price
256 above listing price
One SFR sold for $1,506,248 OVER listing price
With the holidays approaching, we usually don’t expect many homes coming up for sale, but since it appears that we are constantly in new territory when it comes to the real estate market lately, we could see a significant reversal of the norm.
If you are looking to sell/buy anywhere in California, give Sun Pacific Mortgage a call at 707-523-2099 to discuss the many lending programs we offer for purchasing, refinancing, and bridging on owner-occupied and investment properties. Or visit our website www.sunpacificmortgage.com to learn more!
Sun Pacific Mortgage has been in business for almost 34 years now, providing private mortgage loans to thousands of Californians. We continue to be there for those in need, due to the loyal and experienced Private Investors who trust us to perform our due diligence and provide them with sound investment opportunities.
Before we offer any loan to our Investors, we have carefully vetted the loan and the Borrower to reasonably ensure we endorse only those that have the legs to successfully carry it through to the end of the term.
Of all the loans entrusted to us, only 1 in 5 are presented to our Investors, thus proffering only those who fit the 2 main qualifications for getting a private loan through us:
The principal factor considered for any Trust Deed that we offer is the ability of the Borrower to repay the loan and secondly, that there is enough equity/good down payment to give an Investor a reasonable sense of security in his/her risk.
We currently have thousands of partner-investors that receive new Trust Deed offerings each day, twice a day. When they see a potential opportunity for some passive income, they respond and receive further details regarding the property and the Borrower.
We are able to close most loans anywhere from one week to a month. In the past three months, we have averaged 30 new available Notes each month, for loan sizes between $150,000 and $1,800,000. Larger loans are generally fractionized, meaning more than one Investor is engaged in supporting the loan.
If you have considered or are ready to start increasing your wealth, give us a call at 707-523-2099 to discuss what it takes to join our family of trusted Investors. You can also check out our Investor website page here https://www.sunpacificmortgage.com/invest-in-trust-deeds/ and send in a form for further data.