Owner-Occupied Hard Money in California: Yes, It Exists

If you have called around for a hard money loan on the home you live in, you have probably heard the same line over and over. Investment property only. Non-owner occupied only. Sorry, we cannot help with a primary residence. Lender after lender, same wall.

The wall is real, but it is not because the loan cannot be done. It is because most private lenders choose not to do it. Owner-occupied lending on a primary residence carries a heavier compliance burden than lending on an investment property. Consumer protection rules, ability-to-repay requirements, and licensing all apply in ways they do not on a pure investment deal. A lot of lenders look at that and decide it is not worth the trouble. They stick to investment property and turn everyone else away.

We do not. Crawford Park Financial offers owner-occupied hard money in California, on a 30-year term, up to 65 percent loan to value.

What owner-occupied hard money is

It is a loan secured by the home you live in, underwritten primarily on the equity in the property, a conventional credit and income profile. It exists for borrowers who do not fit neatly inside a bank's boxes but who have real equity and a real ability to repay.

That covers a lot of good people. The self-employed borrower. The homeowner who had a credit event in the past few years and has recovered, but whose score has not caught up. The borrower in a timing crunch who needs to move faster than a conventional underwriting cycle allows. The owner of a property unusual enough that a bank will not touch it.

None of those situations means you are a bad borrower. They mean you are a borrower a bank is not built to serve.

Why we can do it when others will not

Two reasons. First, we are licensed and we have been doing this a long time. Crawford Park Financial has funded more than $120 million in real estate loans across twenty-plus years of private lending. Second, compliance is in the building. Joanna Crawford runs our finance and compliance function and came to us from a senior compliance role at Countrywide Home Loans. The reason most private lenders avoid owner-occupied loans is the reason we can handle them. We know how to structure them correctly.

The 65 percent loan to value is part of that. A lower LTV than you might see on an investment loan reflects the care that goes into an owner-occupied file. It protects you and it protects the loan. The 30-year term gives you a payment you can live with rather than a short fuse that forces a refinance before you are ready.

What this is not

It is worth being straight about this. Owner-occupied hard money is not a loophole and it is not a way around qualifying. The loan is still underwritten. Ability to repay still applies. We are going to look closely at the deal, because doing it right is the whole point. If a loan does not make sense for you, we will tell you that.

What it is, is a real option for borrowers who keep getting told no by lenders who simply do not offer this product.

If a bank has turned you down

You may have more room than you have been led to believe. The equity in your home is worth a conversation. Send us your scenario and Mark will review it personally and give you a straight answer.

Email Mark Crawford at Mark@cpfre.com or call 310-273-3333.

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Crawford Park Financial Inc. CA DRE# 01835807, NMLS# 354251. This article is for informational purposes and is not an offer to lend or financial advice. All loans are subject to underwriting approval. Loan terms, LTV, and availability vary by scenario and are not guaranteed. Not available in all states.