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 can not qualify for a conventional loan or even a non-prime loan then there only alternative may be a private money 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.
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 LTV's (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.
Recomended LTV's are;
Single family residences from 1-4 units 75% LTV on first deed of trusts and 70% LTV on second deeds 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 discused on a per loan bases considering a number of factors.
Interest rates that our 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 fee's associated with the investment including title and escrow fees. Lender receives title insurance CLTA or ALTA Standard policy insuring clear title, access to the property and on improved properties hazerd 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, Sonoma counties.
* Special conditions apply for Owner Occupied Properties including impounds for taxes and insurance for a first deed of trust. "Currently we have suspended our owner occupied private money home loans until we find it feasable to handle this as part of our loan servicing program.
For more information call Phil at:
(707) 964-0708 or Toll Free: 866-706-2342