In the United States, 1/3rd of Americans have credit that is poor. Poor credit doesn’t stop you from needing necessary repairs for your home, assistance for your business, or more money to help pay bills that have fallen behind. Luckily, there are institutions that offer hard money loans. If you own your residence and it’s your primary residence, you could get a hard money loan, otherwise known as owner occupied loans, from private money lenders. Hard money loans use the primary residence that is occupied as securing collateral. There are actually two loan programs available, owner-occupied alternative financing loans, and owner-occupied hard money business loans. Both of those types of loans are only obtainable through a private money lender in California.

Do You Own a Business That Needs Financial Help?

Hard money loans are available for business owners that own their own home and want to use the property to get funds used for their business. Of course, the property has to be located in California in order to get a hard money loan from a California private money lender. It is also understood that the bulk of the money is to be used directly for the business. An owner-occupied loan for business purposes is different than a consumer purpose loan.

When is it feasible to get an owner-occupied business loan? When your business needs improvements or financial assistance, a business purpose loan using your home as collateral is the perfect way to get funds. The use of funds from the loan must be primarily for business purposes. Perhaps it’s time to expand your business but you don’t have the money to get the expansion going. This type of loan can also help to pay business debts or be used for start-up costs. As long as the majority of the funds are being used to assist your business, you can qualify for a business purpose loan.

Are You Eligible for Conventional Financing?

There are many reasons you may not qualify for conventional financing such as a loan from a bank. Private money lenders understand the frustration behind not being able to get a loan when you really need one. That’s why they offer owner-occupied alternative financing loans or hard money personal loans. As long as your property is in California, you can get a hard money loan from a private money lender. Using the services of a hard money lender is easier than trying to get a loan through a credit union or bank.

Who Qualifies for Hard Money Loans?

There could be many reasons why you have been denied a loan. When you have your own primary residence, there is hope. Even if you have suffered from a recent bankruptcy, foreclosure, loan modification, or short sale. It doesn’t matter if you have bad credit or if you can only prove your income through alternative methods. Are you self-employed? Do you have a short employment history with your current employer? If you can answer yes to any of those questions or relate to those circumstances, you should take the steps to get an owner-occupied hard money loan to ease your financial burden.

What Does Owner-Occupied Mean?

The term owner-occupied in reference to hard money loans refers to a primary residence. It is the property location you call home and live in the majority of the time. It stands to reason that you can claim only one home as your main residence. You can still qualify for hard money loans whether you live in the residence with other people or alone.

Ultimately, if you own your own home and you take up residence there, you partially qualify for a hard money loan. Another factor that will be used is your loan-to-value ratio or the LTV. Your LTV is actually imperative to the lending process. It is also exactly what it sounds like, the ratio of a loan is given in relation to the value of your property. Speak more with a private money lender to get started.