When it comes to commercial and residential mortgages, they have one similarity: they involve property. For the most part, that’s where their similarities end. If you’re new to taking out a commercial mortgage, you’ll probably soon discover that there are some significant differences, especially if you’re more familiar with the residential market. Here are some of them:
Current updates on the real estate market, private money, hard money, and trust deed investing.
Owner Occupied Loans
Following the biggest economic crisis of the 21st century, federal and state regulators tightened the laws around mortgage lending. In response to a crash that largely due to activities in subprime lending, the government introduced the Ability to Repay rule. In short, this rule sets strict criteria outlining who is likely to repay a mortgage successfully. Those individuals then qualify for a loan called a qualified mortgage (QM).
If you want to unlock the value from your home while you’re still living in it, there are two main options available to you. A home equity loan, commonly known as a second mortgage, allows you to extract value from your home as a lump sum payment, which is added to your primary mortgage debt. A home equity line of credit (HELOC) can be a useful alternative, with this option allowing you to draw money from your property as you need it rather than as a lump sum.
The property market can be a complex place at the best of times, with people often looking to simplify their options in order to make things easier to manage. When it comes to mortgages, however, the complex solution can potentially save you a lot of money. Sometimes, two mortgages are better than one. While taking out a second mortgage might seem like a counter-intuitive way to save money, an 80-10-10 loan can be a powerful way to avoid the costs and pitfalls associated with a jumbo loan.
If you’re looking to buy a new home, it’s important to explore all of your financing options. An owner-occupied bridge loan is a great solution for people who want to generate capital from their existing property and make an offer on a new home in a highly competitive seller’s market without a sale contingency.
Hard money provides a means of borrowing from someone other than a traditional mortgage lender. It can be a good option when you need a loan fast, but not everyone can get a hard money loan.
At one stage or another, there will come a point in your life where you need to access cash quickly. As the name suggests, an owner-occupied loan is a loan which you will take out and secure against the property you live in. While some people use these loans for meeting personal expenses, others will use them to fund investment projects. Such projects usually take place in the real estate industry. If you’re trying to secure a private money owner-occupied loan, you may find that doing so with a view to expanding your current property portfolio works to your advantage.
Will lenders provide construction completion hard money loans to a homeowner building a new house who runs out of money?
The short answer is: “Yes.” Over the past year, we at First Capital Trust Deeds have been originating more and more owner occupied hard money second mortgages all throughout California.
Is it possible to obtain 90% owner occupied hard money financing for a primary residence in California?