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Hard money constructions loans during COVID-19 are evolving with each passing week as construction lenders are shifting on the fly into a more cautious mode. This blog post will give a quick run down of what First Capital Trust Deeds is seeing the hard money construction loan market in the middle of April 2020, one month into the forced shutdown of the economy.
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.
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.
When it comes to second mortgages, you probably fall into one of two camps. The first sees refinancing their homes as a terrifying financial prospect. The second sees a unique opportunity, which presents plenty of benefits in the right circumstances.
The most popular question I’ve received over the past two weeks has been, “Do you offer hard money second mortgages?”
Believe it or not, there is such a thing as a hard money business purpose home equity line of credit (HELOC) available in California for residential and commercial properties. At First Capital Trust Deeds, we have closed a few of these loans over the past couple of months and continue receiving inquiries from self-employed real estate investors every month for the program.
Over the past two weeks, we’ve had three different lenders (one investment fund, one family office, and one individual), tell us that they’re limiting the Loan-To-Value (LTV) they’re giving on hard money cash-out refinances.
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.
First Capital Trust Deeds frequently works with California real estate investors who own high-end rental properties in the $1,000,000 to $10,000,000 range. For a variety of reasons, our clients cannot obtain jumbo bank financing on their rental property (or properties) and they turn to us for help finding the best private money financing for luxury rental properties that suits their situation.