Equity Loans
for San Francisco, San Mateo, Sacramento, Los Angeles, and All of Orange County, CA

Why you might take out an equity loan

 People use hard money equity loans for a variety of reasons. As mentioned previously, conventional and government lenders are continuing to further tighten their credit and underwriting guidelines, making it more and more difficult for investors and homeowners to get access to the equity in their homes. Some of the most common scenarios we encounter from people using hard money equity loans include:

• Inherited a property that is free and clear, and have no credit or bad credit to get approved to pull cash out of it.
  
• Paid cash for a property recently and need to get cash out of it (conventional and government loans require 12 months seasoning on title where hard money loans have no seasoning requirement at all).
  
• Already have more than four properties financed (conventional and government loans will now allow more than four properties to be financed or they will not approve a loan, hard equity money loans have no financed property limitations).
  
• Property types and conforming and government loans are allowed with hard money equity loans such as mobile homes, raw land, condos and town homes. 
  
• Investors looking to purchase a home and need to close fast (conforming and government loans can take 30-45 days but hard money loans can close in 3-5 days).



What is a hard money equity loan?

A hard money equity loan, also known as a hard money loan or private money loan, is a type of loan that is secured by the equity in a property. Unlike traditional loans that are based on the borrower's creditworthiness and income, hard money equity loans are primarily based on the value of the property being used as collateral.

Hard money equity loans are typically provided by private individuals or companies, known as hard money lenders. These lenders focus on the value of the property rather than the borrower's specific financial situation. This often makes hard money loans viable options for anyone with less-than-perfect credit or those who may not qualify for traditional bank loans.

Hard money loans are extremely quick to obtain - in some cases, borrowers have been approved and received their funding within days. Furthermore, they tend to come with more flexibility; hard money lenders tend to be more open to financing non-traditional properties, such as properties that might need extra repairs or renovations. This can make this option more attractive for individuals who are operating under unique circumstances.

While there are many benefits to pursuing this type of loan, it's important to remember hard money lenders assume a higher level of risk when they enter these agreements. As such, hard money equity loans tend to come with higher interest rates and fees when compared to traditional loans. If you’re considering this type of loan, do your research to make sure that the potential benefits outweigh these higher costs.

Saxe Mortgage Company has spent years working with borrowers throughout the San Francisco, San Mateo, Sacramento, Los Angeles, and Orange County, CA areas. We can help provide loans at terms you can afford. Reach out to us today to learn more!

Types of hard money equity loans

Not all hard money equity loans are the same. There are two different types of hard money equity loans that you can consider using:

SIVA (Stated Income Verified Assets) Hard Money Equity Loans or SISA (Stated Income Stated Assets) –These are true hard money equity loans. The lender is lending money based strictly on the amount of equity you have in your home, and you either state or verify your income. These loans close very fast as the only thing to do is arrive at a fair value on the home and ensure the title work is in order. Interest rates on a SIVA (Stated Income Verified Assets) or SIVA (Stated Income Verified Assets) hard money equity loans can run higher than on a 10–30-year fixed rate mortgage.

Full income documentation equity loans –These loans allow the homeowner to get interest rates closer to 10% on a 20-30 year fixed rate mortgage. These fully documented hard money equity loans allow investors and homeowners that can prove their income to receive better terms. These loans help fill the gap for investors with more than four properties financed, investors that need to close quickly on their home using hard money equity loans, and home owners with poor credit that banks will not finance. 

If you have been considering a hard money equity loan or have been turned down by the bank but have equity in your home, we highly recommend contacting the team at Saxe Mortgage Company today. By this time next week, you can have your equity in your bank account! Our hard money lenders are proud to provide equity loans to clients across San Francisco, San Mateo, Sacramento, Los Angeles, the communities surrounding Orange County, CA and the San Francisco Bay area.