Owner Occupied California Hard Money Loans

There was a time not long ago where hard money lenders for owner occupied properties were nearly impossible to find.  The real estate market had gone through a major crash and new regulations were being implemented, aimed at protecting consumers.  While most of those regulations were written with more traditional types of lending in mind, the rules and regulations do apply to hard money loans as well.

As these rules have had time to settle in, more investors are feeling comfortable with their understanding of the regulations, which means money is starting to free up for owner occupied residential hard money loans to be made.  While hard money loans do still require income documentation, there are many benefits to working with a hard money lender for your owner occupied financing needs when the banks will not make a loan.

For one thing, poor credit, recent foreclosures or short sales or many other issues that banks will deny a loan for will not preclude someone from obtaining a hard money loan.  Even for people recently out of bankruptcy there are hard money loans available.  There is no arbitrary waiting period after a foreclosure or short sale before you can obtain a hard money loan.  While better credit may allow for a higher loan to value or even a slightly better rate or terms, credit is not the deciding factor on loan approvals for private money.

Also, income documentation with the banks can be very rigid, especially for the self employed.  The ability to document income using bank statements or other verifiable third party means is another benefit hard money lenders bring to the table.

The downside of hard money for owner occupied properties is the down payment requirement.  Typically speaking buyers are going to need anywhere from 25-35% down, plus closing costs.  With this being said, however, the flexibility of private money means funds typically don't have to be seasoned, can come from family members or other legal sources.

For more information, visit our residential hard money loans page on the web!