ARC Private Lending Does Owner Occupied Loans In California


ARC Private Lending does two types of owner occupied loans on residential properties up to 4 units in California.  (We also lend on 5+ units but those are classified as commercial properties.)  We are only licensed to do owner occupied loans in California.

Below are the two loan programs we offer where owner occupied homes might be eligible to be used as the securing collateral:

Owner Occupied Hard Money Business Purpose Loans

Owner Occupied Alternative Financing Loans


1. Owner Occupied Hard Money Business Purpose Loans (California Only)

These loans are available for owner occupied homes when the loan funds are being used for a BUSINESS PURPOSE and the property is IN CALIFORNIA.  This means that the majority of the funds must be used for business purpose.  See below for more details about the difference between a consumer purpose loan and a business purpose loan.


2. Owner Occupied Alternative Financing Loans (California Only)

These hard money loans for primary residences are available for borrowers who don’t qualify for conventional financing, a loan offered by a bank, and the property is IN CALIFORNIA.

As private money lenders for residential owner occupied loans, we can help those who may not qualify for a conventional loan for various reasons, such as bad credit or the need to prove income by alternative methods.

Qualifying is easier for this type of loan than going through a bank.  For example, we have closed loans on this program with credit scores under 600.



What Is Meant By Owner Occupied?
When we say owner occupied we are referring to your primary residence, or main residence.  This is where you live most of the time.


You can only have one primary residence at any given time.  You may live here with other people or by yourself.

Family Cutout Of Paper


What Is A Consumer Purpose Loan?

A consumer is a person who is purchasing a service, like getting a loan, for personal use.  The purpose is the reason the person is getting the loan.  A consumer purpose loan is a loan that you are getting for yourself so you can use the funds for a personal, family or household use.

Examples of a consumer purpose loan include but are not limited to:

  1. Paying off personal debt
  2. Remodeling or adding on to your primary residence
  3. Paying off an existing mortgage on your primary residence
  4. Buying a house to use as your primary residence


What Is A Business Purpose Loan?

The purpose is the reason the business is getting the loan.  A business purpose loan is a loan that the person is getting so the funds can be used to improve or assist his or her business in some way.

Examples of a business purpose loan include but are not limited to:

  1. Expanding the business
  2. Paying business debt
  3. Business start up costs


What Is A Loan-To-Value Ratio?

The Loan-To-Value Ratio, or LTV, is an important element in our lending process.  The LTV is the ratio of the loan to the value of the property.