Refinance Using Hard Money
You have loanable equity in your property, whether it’s residential, commercial or land, and want to borrow against it. Loanable equity means the amount you can borrow that exceeds what you already owe not to exceed 70% of the value of the property. For example: you owe $245,000 and the value is $350,000. There is no “loanable equity” as you are at the 70% limit. Another example: You owe $100,000 and the home is worth $350,000. 70% of $350,000 is $245,000 so this would mean you have $145,000 of “loanable equity”.
So you need money and you’ve tried your favorite bank, your favorite savings and loan, your favorite credit union, your favorite mortgage broker and gone on line and applied on several sites for a loan. It’s been no, no, no, no, no and no in that order.
The reasons you cannot get a loan are the exact reasons you need Hard Money. It allows really bad credit, high debt ratios, problem properties, short job history, etc., etc., etc.
Refinancing can allow you to reduce your credit card debt, finance some home remodeling, pay for college tuition and more. The money you were paying out for those non-deductible expenses is now being applied to a tax deductible expense – your home mortgage!
You really only need 2 things for Hard Money: #1 is equity and #2 is an ability to repay the loan.
It is a real tragedy that the Feds have so changed the lending standards with burdensome regulation so that there are not more options for borrowers looking to get at the loanable equity in their homes. Hard Money is still around and getting to be a popular choice as it is the only game in town for so many.
If you have any questions or need help with refinancing, send me a message here or call me at my office 707-523-2099!
Best, Forest - The Guy in the White Hat
Sun Pacific Mortgage & Real Estatet
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