There are many Arizona Hard Money Lenders out there, but only some of them are owner-occupied hard money lenders. Read on to find out why this is and what you can do about it.
You’ve probably seen a ton of Arizona Hard Money Lenders that lend for residential and commercial properties. In research, you might notice that Arizona Hard Money Lenders that lend for owner-occupied properties are few and far between. But, why?
Compared to other types of loans, owner-occupied loans are more difficult for hard money lenders. Residential and commercial real estate loans have fewer restrictions than owner-occupied loans, making them easier for lenders to process and approve. These traditional Arizona Hard Money Loans can be approved very quickly and without the need for good credit or loan histories, giving them clear appeal.
Owner-occupied homes require much more work due to state regulations. When a borrower offers up his home as collateral for a hard money loan, he is giving the lender control over the property until the loan is paid back. If the loan is not paid back in time, the lender has the ability to take the property. Clearly, this poses a conflict if the home owner is occupying the property. In an effort to protect home owners from hard money lenders, states have put rules in place to make this process more secure.
Owner-occupied Arizona Hard Money Lenders must place applications for these types of loans under higher levels of scrutiny. The state and federal governments have rules in place that require lenders get specialized licenses to lend owner-occupied loans. Lenders also must be more detailed in their analysis and approval process than they might for other types of Arizona Hard Money Loans based on governmental regulations. It can be easier for lenders to simply not offer owner-occupied loans than to go through the processes of getting the correct licenses and having to go through borrowers’ information very carefully.
How Can I Get My Owner-Occupied Loan?
The key to getting your owner-occupied loan is to be able to prove you can make your loan payments. It’s important for lenders to be sure you can verify your ability to pay the loan before they will lend to you. Knowing information about your loan going in can make it easier to get just because you won’t have any surprises. For example, knowing your loan amortization is important. With hard money lender SetaBay, your loan will be fully amortized over 30 years, allowing you to pay in smaller amounts over time.
Search for an owner-occupied money lender near you.
Although there aren’t too many owner-occupied Arizona Hard Money Lenders out there, they aren’t impossible to find. SetaBay, for example, is approved to lend owner-occupied real estate loans and they even offer great benefits for borrowers. Low rates are available, there is the potential for 100 LTV financing, and they have no pre-payment penalties on their loans. For anyone looking for an owner-occupied loan, consider SetaBay.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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