Tapping Your Equity for Business Growth: 3CALoan
It is difficult to tap the remaining equity for many people who have their property with existing loans at excellent terms. In this type of situation, hard money second mortgage can help you better. Loan guidelines have changed, as have rates, and the ability to have a cash out on a new first loan at similar or more advantageous terms. Many institutions have changed their terms and they are also limiting their second position lending programs. For the equity in an existing property, they are making it difficult to obtain a second or line of credit. In this article, we will discuss some basic of California hard money seconds for business purposes.
Obtaining Second Position Loans
Basic factors of obtaining second position loans or lines of credit on the property:
The first and important factor of obtaining second position loans is the Cumulative loan to value. CLTV is defined as the ratio of your existing debt plus the proposed debt to the value of the property. The maximum CLTV that we can help is of 50%. For example, if you have a property which worth $1,500,000 and have an existing loan of $600,000, in this situation with a hard money second mortgage we could potentially help up to $150,000. We can explain you the calculation total worth $1,500,000 and 50% of it is 750,000 and this is the maximum total debt.
USE OF FUNDS
This is another factor that we can take into consideration is the use of funds. But this doesn’t mean that we are able to help with consumer purpose hard money second mortgage deeds of trust, we can only able to help you with hard money seconds. In hard money seconds, the use of the fund is basically for business purpose. For example, you are looking to expand your business by acquiring new offices, starting a new advertising campaign, increasing inventory, etc.
For real estate investors it can be obtaining funds for:
- Putting a down payment on the additional investment property
- Purchasing additional rental properties
- Improving existing investment properties
It could also be used to purchase a legitimate business, and also a number of other business purpose uses. Because of use of funds, it implies the purpose of the hard money home loan. We cant issue loan on the basis of owner-occupied homes because we need to a have a document of use of funds. We have to confirm that the business use of those funds. For consumer purposes, we can’t help with hard money second mortgage. We can convert hard money second mortgage to individuals, corporations, LLC’s, or other legal entities. From hard money second mortgage, you can’t use these loans to pay off your debt like purchase vehicles for personal use, send children to college, etc.
FINAL THOUGHTS
If you would like to see how easy it is to apply for a hard money second mortgage, please give us a call. 3CALoan is the company to call for loans in Southern California. You should have the full information about loan terms. Don’t rush during the process and avoid the common mistakes with home loans. We know that sometimes people have a harder time for getting a home loan. That’s why we offer multiple different alternative financing options. Our competitive rates, efficient services, and talented team can help ease the process of the home loan. We help our customers every step of the way. We prioritize informing and educating our clients about the home buying process. Our client’s happiness and confidence upon closing a deal reflect our excellent quality services.
3CALoan local mortgage broker provides no tax return home loan which is also called no tax return, without tax return, without tax return, Private money loans for real estate, private hard money loans, bank statement home loan, bank statement loan, equity loan and many more. If you still have any doubt, you can contact us at (818) 322-5626 or (818) 3CA-Loan today! Our specialists will be in touch promptly to answer your questions. We will run you through the details of home loans and hold your hand throughout the process. We only have one aim of helping people first.
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