If you're new to "hard money" loans it's likely your basis for understanding and comparing hard money lending will be what you already know about conventional bank loans.

Bank loans are bank loans. Hard money loans do not compare to bank loans. They are polar opposites in both form and function despite having common logistical processes.
The best bank loan offers the lowest rate and fees and longer terms. A hard money loan (secured by residential property for purposes of this article) is a short-term fix with a premium price tag that's less restrictive in some ways and more restrictive in others, designed to bridge a gap between situations until it can be paid off or replaced with a bank loan.

Qualifying for conventional loans from banks and credit unions, however, is difficult or impossible for many people today for various reasons. Government loans — FHA, VA, and the like are available to those with less money to invest or who have less-than-perfect credit, but other factors like income, debt ratios, employment, and assets still matter. Second mortgages are very difficult to secure, most lenders restrict the amount of properties you can have financed at one time, and banks adjust their lending guidelines fast and often, sometimes terminating a loan approval midstream. It's no wonder then that so many people today are looking to hard money loans as an alternative to bank financing.

In some cases a hard money loan may prove to be the answer, provided you're goal-oriented as opposed to "process-oriented". The two are not the same, nor can they co-exist–you are predominately one or the other. It's a scientific fact that the left side of the brain processes analytical information such as interest rates, fees, payments etc, while the right side of the brain is the creative side and adept at considering the "bigger picture" like the goal of consolidating debt or the dream of owning an investment property. Humans are either left or right brain dominant and this effects how you perceive the loan.

The truth is that the overwhelming number of people who inquire about a hard money loan will never obtain one. There are two primary reasons.

Read the rest of this entry »

I'm proud to offer many unique programs for California home buyers. These unique loans are currently in effect for 2009:

100% financing:
* "NO Down Payment" Cal Rural Home Loan: 100% financing is available for qualified home buyers in select communities across California. This loan product does NOT have a minimum credit score requirement, no mortgage insurance, and you do not have to be a first-time homebuyer to qualify. Geographic, maximum income, and other restrictions apply.

California Purchase & Renovation Programs
* FHA "203k" and "Homestyle" Purchase + Rehab / Repair loans: These unique loans offer home buyers a low down payment and renovation loan in one permanent mortgage! Loans up to 110% of the "after repaired value" of the property (100% for condos). Purchase any 1-4 unit property in need of at least $5000 in repairs or improvements — ideal for bank-owned REO fixer-uppers! Primary residence (or investment property with restrictions), residential zoning, 1 - 4 unit property, and 620 minimum credit score required.

STATED INCOME Homebuyer Program
* Limited Time Offer! Stated Income conventional loans are still available for qualified home buyers. Two programs available:

1) W-2 Employee: must be W-2′d two or more consecutive years only, 20% - 40% down (depending on credit score and occupancy), residential 1-4 units, can be owner-occupied, 2nd home or investment, but no more than 4 financed properties at application are allowed. $100,000 - $625,000 max loan. Excellent rates. Other conditions and restrictions apply.

2) Super Jumbo Self-Employed Program: MUST be self-employed 2+ consecutive years, loans of $418,000 - $3,000,000, minimum 680 credit score, minimum 30% down, residential 1-4 units, can be owner-occupied, 2nd home or investment, liquid assets in reserve a must. Sorry — NOT AVAILABLE to borrowers in the real estate, mortgage, or housing development sectors. This program limited to San Diego, Orange, Los Angeles, Ventura, Santa Barbara, San Francisco, Marin, Napa, and Sonoma counties.

For more information on any of the above California home buyer programs call me direct today at 1-800-644-8829.
(No Loan Brokers Please)

I'd have figured this group for a lot of finger-pointing at mortgage brokers as a root cause of the mortgage crisis, but even the liberal-leaning partner of CNN, TIME, has released it's opinion of the biggest culprits in the debacle, and amazingly main street mortgage brokers and bankers aren't on the menu. Instead, the online magazine cites "The American Consumer" alongside certain presidents and investment bankers and based on the number of substantiating votes rendered by online readership, people seem to agree. This is quite a departure from the "everyone else is to blame" mentality many homeowners have adopted after realizing that home ownership isn't all about unlimited appreciation and cash-out refinancing, but TIME spares no quarter in leveling blame where it fits elsewhere.
Read the rest of this entry »

You might think that it only makes sense to begin constructing a new home AFTER all financing is in place and sufficient to complete the project, but I'm receiving loan inquiries from property owners who have begun construction and are at varying levels of completion but are short the funds needed to complete the project.
Read the rest of this entry »

I'm an avid amateur photographer. While searching for some digital photography equipment specs many years ago I ran across Ken Rockwell's photography website here.

Ken has dedicated himself to evaluating and testing both Nikon and Canon bodies and lenses, as well as software and related post-processing equipment for the general public. More importantly, however, he's written several articles that dispel many common notions and misconceptions amateurs and serious photo hobbyists have, some of the most notable (and sometimes controversial, depending on whom you ask) being "Why Your Camera Doesn't Matter", "Photography Is Not A Spectator Sport", and "The Seven Levels Of Photographers", to name a few.

So what does Ken Rockwell's photography website have to do with California mortgage loans and real estate?
Read the rest of this entry »

Living trusts are a complex personal financial issue that need careful, qualified consideration. Non-Revocable Trusts and Revocable Trusts are different in many ways.

With many Americans vesting title to their real estate in a living trust, and many more considering living trusts for future planning, is a living trust right for you? What are the pros and cons of a living trust as far as taxes and wills go? What are the differences between a "revocable trust" and one that is "non-revocable"?

One of the best articles of information on the topic of living trusts I've seen is here. Remember to read the entire article, making notes of any questions, and discuss these with ALL of your financial experts — your accountant, financial planner, and attorney BEFORE committing to a living trust.

And remember, don't fall for "discount" living trust scams. Take the time and invest your money working with experienced professionals who can help you make the best living trust choices and guide you through the process of living trusts.

Looking for low down payment financing on a home? We're able to offer FHA loans to qualified home buyers and refinancing with FHA loans!

What can a FHA loan do for you?

* FHA provides Low Down payment loans — just 3.5% down, and sellers can pay closing costs.

* FHA provides low interest rates for affordable monthly payments.

* FHA loans allow property sellers to pay closing costs — including "non-recurring" costs.

* A FHA loan can finance 2 - 4 unit properties and manufactured homes on permanent foundations.

* FHA loans allow less-than-perfect credit in cases where there is a valid explanation for the low scores. We can close FHA loans even with credit scores as low as 520.

* First-Time home buyers qualify for FHA loans.

* FHA loans can be used to refinance property you own, including cash-out. "FHA Streamline" refinancing allows you to lower the interest rate on a current FHA loan with little or no cost when market rates are favorably lower.

Read the rest of this entry »

We've all heard the nightmare stories about so-called "fixer-upper" homes. Sometimes things go smoothly, sometimes there are "surprises" you couldn't possibly imagine.

For those of you that have seen "The Money Pit" with Tom Hanks and Shelley Long, everything went wrong for the aspiring homeowners, but how would you like to be the poor folks featured in this story?

Sometimes reality is scarier than fiction.
:)