Did you know that you may be able to qualify for an owner-occupied hard money loan on your primary residence? If you've been denied by the bank or credit union, find out how you can still get funding.
If a bank or credit union has told you that you can't get a loan on a residential mortgage, it might feel like things are hopeless. But banks and credit unions aren't the only lenders out there. Owner-occupied hard money lenders will sometimes offer funds to people who have little or no alternatives. Some of the reasons people might seek out this type of loan include:
● They've been involved in a foreclosure, loan modification, bankruptcy or short sale
● If they have two years or fewer of employment at their current employer
● They don't have a fantastic credit score
● They are self-employed and can't show proof of income
Why it can be difficult to get a owner-occupied loan
Owner-occupied hard money lenders are a rare breed these days, especially in Arizona. Most won't even consider handling an owner-occupied loan for a variety of reasons:
● There's a ton of documentation required
● There are mandated recession periods, so the funding can take longer to go through
● Lenders are often required to get special licensing for these types of loans
● Owner-occupied loans often come with a much greater risk for the lender
But perhaps the most important reason many lenders in Arizona refuse to do owner-occupied hard money loans is the regulations imposed by the Dodd-Frank Act. The Dodd-Frank Act put tight regulations on lenders, requiring them to verify paystubs, W2s, and tax returns to assess the borrower's viability. If they fail to do so, there can be dire consequences from the federal government.
Is an owner-occupied hard money loan right for you?
An owner-occupied private loan may be the best move for people in the following situations:
● Those who need time to repair their credit and not lose their residence
● Those who have been denied a loan at banks and credit unions
● The borrower wants to pay off high-interest debt and doesn't qualify for a 2nd mortgage
● Borrowers with a mandatory waiting period for events like foreclosures and short sales
If the banks and credit unions have turned you down, don't lose hope. An owner-occupied hard money lender in Arizona may be able to help.
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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