A Word from Our Broker Here at SunPacMortgage
By Broker, Forest Tardibuono
Current Uses For Hard Money
Here are some Scenarios that depict the most recent and popular uses for Hard Money:
Scenario 1: 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. You usually cannot borrow 100% of the value. 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.
Scenario 2: You have 30% or more down - from whatever source - and want to buy a home as your primary residence. Your credit report shows a recent foreclosure, or short sale or bankruptcy or a combination of these. Your credit score is well under 600. You have good income as both you and your spouse work.
Scenario 3: You tried to do a loan modification but your lender has refused for whatever reason. To have the lender even consider the loan modification, you had to quit making your payments for the last 3 months and that lowered your credit score to under 600. You owe $400,000 and the identical house 2 doors down from yours just sold for $200,000. With taxes and insurance your payment is $2,750 and you could rent a similar home to yours in the same neighborhood for $1,600. You were thinking to pull some money out of savings and a 401 (k) plan to pay down the loan, but the loan amount in relation to the value would be too high to allow a refinance. So after years of knowing you are losing money and going to lose more, you decide to do a short sale. You saw a home listed for sale in your same neighborhood for less than half of what you paid for the one you are currently in.
Scenario 4: You own 6 rental properties and all are currently financed. You want to buy another one on the same block as 1 of your current rentals for less than you paid 5 years ago. Your favorite bank says you own too many properties and besides that your ratios are too high. You’ve banked there for 27 years and have $250,000 deposited there in various accounts.
The above represent the majority of the uses for Hard Money. There are variations on each of the themes also. Call your favorite Mortgage Broker offering Hard Money and see if your situation fits!
Don’t miss out! Now is the time to buy or refinance.
For local Real Estate and Mortgage advice in Sonoma County, call Sun Pacific Mortgage and Real Estate. If you have been thinking of investing in the real estate market we have many hard money loans and could use more Investors! Give us a call today (523-2099)
Lynn Tardibuono – Flipper Chick- Real Estate Agent and Co-Owner of Sun Pacific Mortgage and Real Estate. Serving Sonoma County since 1988. Her number is (707)523-2099 and you can also visit our redesigned website at http://www.sunpacmortgage.com Also be sure to like us on facebook! Click this link!