There are several situations where a California borrower cannot get approved for a traditional mortgage solution offered by banks and credit unions. Thankfully, owner occupied private mortgage lenders can offer owner occupied private mortgage loans for those in need of alternative real estate financing.
Sometimes referred to as hard money loans, owner occupied private mortgage lenders have flexible home loan programs that simply the application and approval process, allowing borrowers to get the financing they need quickly.
But before you apply for a hard money loan for a primary residence, its important to understand how hard money for primary residences work. Let’s take a closer look at who owner occupied private mortgage lenders are, the benefits they offer, and how to find owner occupied private mortgage lenders for your next real estate transaction.
Who Are Owner Occupied Private Mortgage Lenders?
Owner occupied private mortgage lenders (sometimes referred to as hard money or home equity hard money lenders) are a specific type of real estate lender that provides asset-based home loan programs to consumers. While home loans are often marketed by big banks and credit unions, owner occupied private mortgage lenders are usually individual investors, businesses, or trusts.
Owner occupied private mortgage lenders frequently offer borrowers a hard money loan for primary residence. To put it simply, owner occupied mortgage lenders can offer mortgage solutions for a California property you currently live in or plan on purchase and reside in as your main home.
California borrowers prefer working with owner occupied private mortgage lenders over institutional lenders and mortgage companies due to the massive advantages they provide. Using hard money for primary residence can grant you greater program flexibility and approval speed for those who find it difficult qualifying for a traditional home mortgage.
Benefits of Choosing Owner Occupied Private Mortgage Lenders
There is a myriad of benefits to gain from utilizing a hard money loan for primary residence from owner occupied private mortgage lenders in California. While flexibility and approval speed are two of the main benefits, there are other reasons why its’s smart to choose a hard money home loan for primary residence from California owner occupied private mortgage lenders.
1. Fewer Lending Requirements
One of the biggest appeals of using California owner occupied private mortgage lenders for your next mortgage solution is that almost all borrowers can qualify. That’s because owner occupied private mortgage lenders have fewer restrictions compared to traditional home loans.
Owner occupied private mortgage lenders leverage an asset-based approach to lending which involves a greater focus on the property securing the loan request rather than borrower characteristics. These could include such factors as employment history or credit score.
This also means that borrowers that have had prior delinquencies, collections, or derogatory credit events, such as a bankruptcy or foreclosure, are not barred from getting a hard money loan for primary residence.
Similarly, owner occupied private mortgage lenders don’t have the same rules and requirements that govern big banks and mortgage companies, meaning they can offer often honor loan requests that exceed the conforming loan limits set by the Federal Housing Finance Authority (FHFA).
2. Simplified Application Process
Since owner occupied private mortgage lenders in California have fewer lending requirements, they require less documentation compared to traditional mortgage solutions. Rather than digging up and forking over stacks of personal and financial documents, California owner occupied private mortgage lenders require very little paperwork, if any. This speeds along the loan process and aids in faster approval decisions.
3. Flexible Hard Money Programs
Both institutional lenders and owner occupied private mortgage lenders offer multiple home loan solutions. But owner occupied private mortgage lenders offer greater flexibility in the hard money loan programs they provide.
Banks and credit unions shy away from certain types of mortgage solutions making it difficult to obtain a solution that meets all your real estate financing needs. On the other hand, owner occupied private mortgage lenders keep their hard money home loan programs flexible making them ideal for more intricate credit situations. A few examples include California owner occupied bridge loans and hard money home equity loans for primary residence.
4. No Refinancing Needed
Several California owner occupied private mortgage lenders have options that don’t require you to refinance your primary home mortgage with favorable repayment terms. While traditional lenders may require you to refinance your primary home loan in order to qualify for new mortgage financing, owner occupied private mortgage lenders have hard money second mortgages for owner occupied properties in California that allow you to get the financing you need without disrupting to your current payment and interest rate.
5. Fast Approval and Funding
It can be an arduous process trying to get a new home mortgage from a traditional lender. Not only are there a ton of hoops that borrowers must jump through to qualify, but it can also take upwards of 30 to 60 days to receive a credit decision.
Conversely, owner occupied private mortgage lenders streamline the application and underwriting process, making it much easier for California borrowers to secure hard money for primary residence. Borrowers can be approved in as little as a few minutes rather than waiting weeks for an approval or denial decision from a bank or credit union.
6. Local Expertise and Personalized Service
Owner occupied private mortgage lenders in California are expert professionals that know the local California real estate market. While some traditional lenders have a national footprint, you are often working with individuals in a call center or department located in another state, with little knowledge of the nuances that can occur in California. This often leads to poor service and accessibility.
When you utilize an owner occupied private mortgage lender in California, you know you are getting personalized service from a local professional that can help navigate you through the complexities of the real estate landscape in your area.
How to Find Owner Occupied Private Mortgage Lenders
Finding owner occupied private mortgage lenders with flexible hard money loan programs in your area may seem like a challenge but is actually easier than you think. A few things you can do to find California owner occupied private mortgage lenders include:
- Completing independent research online of local lenders
- Reviewing digital client testimonials and reviews from site like Zillow and Google
- Identify the best providers by pulling their record with the Better Business Bureau (BBB)
- Asking other local industry professionals, such as realtors, real estate attorneys, real estate investors, and settlement agents for provider recommendations
- Interview different owner occupied private mortgage lenders to identify the best candidate to partner with that can support your real estate objectives
Owner Occupied Private Mortgage Lenders, Independent Lending
Owner occupied private mortgage lenders offer flexible and fast hard money loan programs for borrowers seeking financing for their primary dwelling in California. Nevertheless, your home is often your biggest asset which means it’s extremely important to choose an owner occupied private mortgage lender with a successful track record, that can offer superior quality and service.
Independent Lending is California’s premier owner occupied private mortgage lender, having facilitated over $500 million in mortgage lending over the last decade. With over forty years of combined mortgage lending experience, our flexible hard money loans are tailored to meet your specific financial objectives.
Utilizing a proprietary asset-based approach to lending, Independent Lending never imposes upfront fees or hidden charges, unlike other California owner occupied private mortgage lenders. We strive to offer transparency, building trust and value for our clients.
Having received numerous 5-star reviews on Google and Zillow, alongside our A+ rating with the BBB, Independent Lending is who you want guiding you through the entire lending process. Contact us today to discover how we can support your real estate goals!
