What Credit Score Is Needed To Buy A Home?

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.


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?


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



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?


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!

Top 10 Reasons For Hard Money Today

Top10 - 1
We have always enjoyed watching David Letterman’s The Late Night Show and realized just as he had his “Top 10 reasons”, there are Top 10 Reasons to use Hard Money in today’s market:

  1. You have written 11 [unaccepted] offers and now want to make the stronger offer.
  2. You or your client needs a fast Bridge Loan to buy a new home for the family, before they sell the house currently being lived in.
  3. A home loan was just declined by the bank that approved you or your client a month earlier for something on the credit report that somehow was missed at the start.
  4. You want to consolidate some high-cost debt, have equity in your home so are looking to refinance but your Lender and local bank turned you down.
  5. You have the “perfect loan” for a bank: Great credit, perfect income and big down payment. But the property in question needs fixing – Banks hate dumpy properties.
  6. Three words: “Fourteen” – “Day” – “Escrow”! (Our latest record is 3 days!)
  7. Money is needed for your long-awaited home remodel but your FICO is not good enough due to medical or student bills.
  8. There was a recent Bankruptcy or a short sale not too long ago.
  9. A Foreclosure occurred on your home or an investment property you owned.
  10. And the #1 Reason… As a Hard Money Lender for almost 30 years – we say YES when others say no!

Call us today with your scenarios and let’s see how we can help you or your clients. (707) 523-2099

Need To Know Basis – The Shrewd Realtor

Money Road Sign

As a real estate agent you need to know the products out there for the buyer.  I mean loan products.  Everyone and anyone could buy a home during the heyday!  Now there are really only a few loan programs:

  1. The government regulated (Fannie Mae/Freddie Mac, FHA, VA)
  2. The In-House loans (credit unions and local banks)
  3. Lastly “Hard Money”

The government regulated loans such as FHA are regulated – pretty heavily.  The banks and underwriters are worried they may approve a loan incorrectly and get pounced on by the regulators.  This is likely to relax in the coming months and years, though there are some shrewd enough to make such loans appear stronger in offers today.

More in-house loans are being done by credit unions and banks and can appear stronger in offers.  These are not regularly done by Fannie/Freddie or FHA or VA.  They are irregular loans such as lots of acreage, farms, etc.  Local knowledge is really needed for these types of loans.

Hard money is something that has come into its own.   There is little bureaucracy, deals can be approved and closed in just a few days, there’s no red tape as to qualifications and rates are improving with the hot real estate market.  Basically considered “all cash”, such loans are extra strong and can be used to purchase or refinance dump property, bad credit borrower, irregular income borrower, large cash out borrower, Bridge loans, etc.

As you have seen, the housing market values are only going up, but still the current prices are too good to miss out on…so realtors now, more than ever, need to be extra shrewd when helping Buyers’ submit strong offers and also match them with a really good Lender who is extra shrewd.

And to that I say, “Thank goodness for shrewd agents and lenders!”

Refinance Using Hard Money


Refinance Using Hard Money

You have loanable equity in your property, whether it’s residential, commercial or land, and want to borrow against it.  Loanable equity means the amount you can borrow that exceeds what you already owe not to exceed 70% of the value of the property.  For example: you owe $245,000 and the value is $350,000.  There is no “loanable equity” as you are at the 70% limit.  Another example:  You owe $100,000 and the home is worth $350,000.  70% of $350,000 is $245,000 so this would mean you have $145,000 of “loanable equity”.

So you need money and you’ve tried your favorite bank, your favorite savings and loan, your favorite credit union, your favorite mortgage broker and gone on line and applied on several sites for a loan.  It’s been no, no, no, no, no and no in that order.      

The reasons you cannot get a loan are the exact reasons you need Hard Money.  It allows really bad credit, high debt ratios, problem properties, short job history, etc., etc., etc.

Refinancing can allow you to reduce your credit card debt, finance some home remodeling, pay for college tuition and more.  The money you were paying out for those non-deductible expenses is now being applied to a tax deductible expense – your home mortgage!

You really only need 2 things for Hard Money: #1 is equity and #2 is an ability to repay the loan.

It is a real tragedy that the Feds have so changed the lending standards with burdensome regulation so that there are not more options for borrowers looking to get at the loanable equity in their homes.  Hard Money is still around and getting to be a popular choice as it is the only game in town for so many.

Deal of the Month, We Cannot Lie

LomHard Money Loan of the Month
By Ken Walker, Lead Loan Originator

Investment Property Purchase in Sea Ranch, California

Two weeks ago a borrower called needing a loan to buy a new Rental Property in Sea Ranch, California as part of a 1031 exchange.  Her current Lender was unable to perform with the speed that was needed to satisfy the 1031 exchange and the Seller’s needs.

The purchase price was $1,100,000 and she needed a loan amount of $745,000, making a loan-to-value of 67.7%.

This borrower called at 4:30pm on Thursday.  We got right to it and that same night got the loan approved with an interest rate of 8% for 5 years! The property was cross collateralized to another property she owns, giving a lower the loan to value, thus the better rate.

On Friday the loan was funded and Monday morning the loan recorded with the borrower’s keys in hand!

One of our favorite mottos is, “If we say it can be done, we’ll get it done!”  And another is, “We fund big loans, we cannot lie!”

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

Top 5 Reasons To Refinance Using Hard Money

Top5If you have good equity in your home, you can potentially refinance.  Below are the top 5 reasons one would refinance using hard money, also known as alternative financing:

  1. Remodel your property
  2. Buy an investment property
  3. Consolidate debt
  4. Get ready for the Holidays
  5. Finance kids education

Refinancing one’s home doesn’t only reduce stress it has the added value of increasing your income tax deductions.  The money you were paying out for those non-deductible expenses is now being applied to a tax deductible expense!

We are a local, family owned & operated company who is ready to assist you with your refinance. Call us with your scenarios at 707-523-2099!


Fractionalized Loan Investing


Funding Large Loans…

I wanted to report nothing but good news here at Sun Pacific Mortgage. Last month was another record production month. We are funding an ever increasing number of loans and larger and larger loans.

To get some of the larger loans done we have had to “fractionalize” the loan. This is the formal term we use that describes having more than one investor contribute funds to get the loan done. As an example: $750,000 loan amount and 2 investors each invest $350,000. Another example: Same loan amount of $750,000, but Investor 1 funds $300,000, Investor 2 funds $200,000, Investor 3 funds $200,000 and the final Investor funds $50,000. This is a very common investment tool.

Here are some of the pros and cons of “fractionalization” from the Investors viewpoint.

Pros first: These are just a few of the reasons to do a “fractionalized” loan. 

  1. This allows you to have a share in a very good loan spreading the risk to a number of investors.
  2. It allows you to get your money out there rather than waiting for a loan that fits your available funds.
  3. You don’t have to have all your eggs in one basket. Rather than doing just 1 loan you spread your investment dollars around on a number of smaller investments.


  1. All investors need to agree on a course of action if the loan gets into trouble. This is only real con I could come up with. I must point out that this has not been an issue in the past 5 or 6 years as we have not had a residential foreclosure in that time, that I am aware of. The decision that matters is to foreclose or not foreclose. It’s usually pretty obvious.

Fractionalization can be an amount from $100,000 to $1,000,000. Hopefully this description of “fractionalization” can expand the opportunities for you as the Investor.

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