First Capital Trust Deeds secured the California owner occupied private money loan for the home buyer of this beautiful home in Fontana.
Owner occupied private money loans serve a very small segment of the California home buyer market. Buyers who cannot obtain conventional or FHA financing, who also happen to have at least a 35% down payment with significant income are taking out owner occupied private money loans in order to get into a house knowing that within 1-2 years they’ll refinance into a conventional or FHA loan.
Our self-employed clients in Fontana had nearly 60% down payment funds and a very steady verifiable income that made this loan go through relatively quickly. And that’s what we like to see.
For the buyers/borrowers, the 9.50% rate wasn’t ideal, but they realized that it was only temporary until they can refinance into a conventional loan, which would be within 12-18 months.
For the trust deed investor, this loan made a lot of sense to fund with the significant protective equity and strength of the borrowers who had rebounded rather well after going through a rough patch.
California Owner Occupied Private Money Loan Terms:
- $200,000 Loan Amount (42% LTV)
- 9.50% Interest-Only
- 1,583/Month Payment
- 240-Month Term
- 6-Month Prepayment Penalty