Bay Area Owner Occupied Private Money Financing

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Bay Area Owner Occupied Private Money Financing

An East Bay homeowner used a Bay Area owner occupied private money financing loan from First Capital Trust Deeds to quickly obtain a cash-out loan to make renovations before listing the property on the market.

Free and clear properties are usually pretty easy to obtain an owner occupied private money financing loan. That was the case on this Concord home that was about to be listed on the market in the coming year. The owner wanted to pull some cash out quickly to do about $10,000 of remodeling, and then use the additional cash as the down payment on another purchase nearby.

Even though owner occupied loans are the redheaded stepchildren of the private money and hard money lending world, this loan made a lot of sense to do as a 12-month bridge loan. The borrower originally paid cash to buy the home several years before and was going to put it on the market soon after the last of the touch ups were completed. Since the market was white hot, the borrower paid a little more upfront in points to not have a prepayment penalty, so that when the property sells after receiving a few dozen offers on the first day, the borrower can recapture most of the gains on top of the loan balance.

Bay Area Owner Occupied Private Money Financing Terms:

  • $175,000 Loan Amount
  • 11.00% Interest-Only
  • 12-Month Term
  • No Prepayment Penalty
Do you have a similar financing scenario?
Inquire about your financing options with FCTD.