First Equity is a full-service Mortgage Broker. We handle not only conventional loans but also private (Hard Money.) loans.  In addition, we service private money (Hard Money) loans. 

When a borrower cannot qualify for a conventional or even a non-prime loan then their alternative may be a private loan or what the industry calls a hard money loan.

Why would a borrower not qualify for a loan with a conventional lender?

1) Unusual properties.

2) Credit (sometimes no credit) and income problems.

3) Documentation problems.

4) Foreclosure

5) Owner builder construction.

As a private money (Hard Money) investor you can use a common sense approach to lending out your money. You are not tied down to guidelines and rules that are set for banks and other financing institutions.

We offer borrowers stated income programs determined by the LTVs (Loan to Value.) Taking into consideration credit reports, appraisals, and recommended guidelines. One of our loan officers will be happy to review these with you.

We recommend that in addition to either an appraisal or broker evaluation of the real estate you personally look at the properties that are being considered for a loan.

Recommended LTVs are;

Single-family residences from 1-4 units 75% LTV on first deed of trust and 70% LTV on second deed of trusts.

Commercial properties up to 65% LTV.

Bare land 50% LTV.

Condition of the properties must be considered when dealing with LTV issues and are discussed on a per loan bases considering a number of factors.

Interest rates that are typically paid to our investors;

1st deed of trusts 9.0% - 12% depending on the factors

2nd deed of trusts 10.0% - 13% depending on the factors.

Usually, we write the terms on owner-occupied properties for 84 months interest only. Non-owner occupied can be written from 36 months to 60 months or more. Construction loans are from 12 months to 24 months. Loan terms include a balloon payment due at its conclusion.

We usually have a 6-month pre-payment penalty included as part of the note conditions. On owner-occupied properties, we are allowed to charge a late fee of 6% of the payment amount with a grace period of 10 days. On Non-owner and all other investment properties, we charge a late fee of 10% of the payment amount with a grace period of 10 days. 

The investor pays no fees associated with the investment including title and escrow fees. The lender receives title insurance CLTA or ALTA Standard policy insuring the clear title, access to the property, and on improved properties hazard insurance naming the lender/investor as additionally insured. 

We offer private money loans in Northern California including but not limited to: Mendocino, Lake, Del Norte, and Sonoma counties.

Owner-Occupied Properties:

* Special conditions apply for Owner Occupied Properties including impounds for taxes and insurance for the first deed of trust., also required counseling by an approved Hud counselor, Income documentation, and no balloon payments on consumer-purpose loans. Currently, we have suspended our owner-occupied private money home loans other than loans for business purposes.

For more information call Phil at:

 (707) 964-0708 or Toll Free: 866-706-2342