Residential Hard Money Loans for Investment Property
North Coast Financial are experts in providing hard money loans for residential property. Regardless of the type of residential property, North Coast Financial is able to provide fast and flexible funding for real estate investors. Whether a borrower is in need of rental property loans, rehab loans, cash out refinance loans, estate and trust loans, residential bridge loans or purchase loans, North Coast Financial is always ready to help with quick funding and professional service.
When Should a Real Estate Investor Use a Residential Hard Money Loan?
Real estate investors with perfect credit often choose to use residential hard money loans because they don’t have time to sit and wait for a conventional bank loan to be processed and need to move quickly on a real estate investment opportunity. Residential hard money loans can be funded in a matter of a few days if necessary (for investment property). Bank loans take closer to 30-45 days to fund. Foreign nationals are another group of investors who are routinely denied financing by banks but are otherwise eligible for a residential hard money loan.
Owner Occupied Hard Money Loans – Hard Money Loans for Primary Residence
North Coast Financial is able to provide owner occupied hard money loans in California. Hard money loans for primary residences are much more difficult to fund due to current federal regulations (Dodd-Frank) that all lenders must comply with. Owner occupied loans require the lender to verify the borrower’s income and ensure they are able to stay below a certain debt to income ratio. Conventional lenders and hard money lenders are forced to comply with these regulations.
Borrowers are in need of hard money loans for their primary residence for various different reasons. Issues such as recent foreclosures, bankruptcies, short-sales, loan modifications or poor credit scores will prevent a bank from approving a borrower for a loan. Other lesser-known issues that cause a borrow to use a hard money loan for a primary residence include being self-employed or not having at least 2 years of employment history in the borrower’s current position.
2nd Loans (hard money second trust deeds) on Owner Occupied Property
North Coast Financial is able to provide 2nd loans (hard money second trust deeds) against owner occupied properties. The combined loan to value (CLTV) must remain at or below 65% in order to be considered. A hard money 2nd loan for consumer purpose on an owner occupied property will fall under the Dodd-Frank regulations which requires the lender to verify the borrower’s income and ensure they are able to stay beneath a debt to income ratio. Interest rates for 2nds are higher than interest rates for a 1st due to the increased risk to the lender.