If you have strong equity in or a substantial down payment for a piece of real estate yet the banks decline you, you may be an ideal candidate for a hard money loan.
Unlike mortgage banks or agencies like Fannie Mae or Freddie Mac, which have credit FICO score minimums, income to debt ratios, job and capital reserve requirements, private lenders base their decisions almost entirely upon equity – the value of the property versus the debt owed.
So, while you or the property do not qualify for a conventional bank mortgage, whether due to credit flaws, income documentation challenges, condition of the property, or rigid bank guidelines, a private individual lender will approve your request, as they focus almost solely on the equity protection of the property to justify the loan.
Hard money lenders’ terms will vary from lender to lender, and case by case. This is because each individual lender- investor has their own threshold of risk. Some individuals prefer more risk and reward, while others prefer lower rates and more equity protection. Either way, private money loans are more expensive.
At Cushner Capital Group, we fund California Single Family Residential, Condo, Rehab, Commercial, Mixed Use, and very specific land and ground up construction loans. While we prefer non-owner properties, we still offer owner-occupied financing; however, owner-occupied residential loans are subject to considerably more scrutiny and disclosures. This is primarily due to the various laws and recent government decisions.
Guidelines for non-owner or investment properties are much more liberal.
Our investors prefer metropolitan California neighborhoods, as rural properties tend to cause investors to worry about the ability to resell the property. They prefer to be in first position, but will consider Second Trust Deeds, depending up on the situation – type of first TD, size of first TD, combined loan to value, etc.
If this description applies to your situation, then you may be an ideal candidate for a private hard money mortgage loan! Please fill out the questionnaire below; so that we can help you achieve your goals!
DRE# 00865708/NMLS# 305266