A home buyer used an Orange County owner occupied private money financing loan from First Capital Trust Deeds to close the escrow on-time.
With the mortgage market still dominated by Fannie Mae, Freddie Mac, and FHA, some home buyers run into problems qualifying for financing even when they have a very large 73% down payment. As was the case with our Orange County owner occupied private money financing client who had a large down payment, but couldn’t obtain a conventional loan for another eight months due to a previous short sale.
Therefore, the short-term solution was a 20-year interest-only loan from a Southern California trust deed investment firm, which would hold the borrower over until they could refinance into a conventional mortgage for either 15 or 30 years. In the meantime, the private money loan got the job done and fulfilled the need of closing escrow on-time.
Owner Occupied Private Money Terms:
- $170,000 Loan Amount (27% LTV)
- 9.50% Interest-Only
- $1,345/Month Payment
- 20-Year Term
- No Prepayment Penalty