What Is An Owner Occupied Hard Money Loan?
Most Hard Money Lenders these days do not offer Owner Occupied financing programs, also known as a Principal Residence Loans, due to the amount of federal and state regulations that apply to them.
This type of program does have a higher interest rate but it allows a quick close, makes an impossible deal possible, offers various options and is generally a shorter term loan.
Typically, this type of loan will get paid off with a refinance into a 30 year fixed rate loan once the Home Owner is more able to qualify.
Some instances of when one might use an Owner Occupied/Principal Residence Loan are:
- Buying a first or a 2nd
- Refinancing a loan that has come due.
- Pulling some cash out from the equity in one’s home, to do needed repairs or remodeling.
- Getting some cash out for debt consolidation.
- Getting some cash out for a business purpose.
Here at Sun Pacific Mortgage, we will always have this loan program available because of the important niche it fills for so many Borrowers.
Feel free to send me a message or call in to our office if you have any questions about this type of loan program: 707-523-2099.
Best, Ken
Lead Loan Originator at family owned and operated Hard Money Brokerage, Sun Pacific Mortgage & Real Estate, serving all of California since 1988!
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