A homebuyer secured a seller-financed first mortgage at 85% Loan-To-Value (LTV) and asked if FCTD could provide a hard money second mortgage for the down payment, closing costs and moving expenses. In essence, they were asking if FCTD could help with a zero down payment transaction comprised of an 85/15 seller financing, plus hard money second mortgage debt stack.
Current updates on the real estate market, private money, hard money, and trust deed investing.
If you’re a house flipper already approved for a hard money first mortgage and need a second mortgage to cover down payment and closing costs, chances are you’re talking about something called gap funding. This blog post will discuss what you need to know about gap funding, including:
This question has come in through the website dozens of the times over the years from prospective house flippers who are short on funds to close their transaction. What they’re asking for is something called “Gap Funding,” which is a hard money second mortgage that “fills the gap” when not having funds for down payment and closing costs.
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 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.
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.