As most of you know, almost all loans require income documentation today, with only a few exceptions. The first exception has to do with especially liquid borrowers with seven to eight figure liquid asset accounts. Lenders like First Republic and Union Bank will do “make sense deals” for such borrowers with limited income documentation. The other exception, of course, is Hard Money.
Hard Money will lend up to 75% of Appraised Value/Purchase Price at rates of 10.5% to 11% and with total fees in the 5 point range. But, Hard Money will no longer lend against Owner Occupied properties after October 1st. New regulations and rate restrictions imposed by Congress make owner occupied loans impossible for Hard Money Lenders.
If anyone is involved in a purchase requiring Hard Money financing, make sure the purchase is for an “investment property”, and NOT for an owner occupied dwelling. If the buyer should accidentally move into the property later on, so much the better. Just make sure the buyer is “an investor” through the close of escrow.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167