Business Purpose Cash-Out Program:
This cash-out program is used to draw equity from a subject property for a business purpose. The property collateralized can be owner-occupied or non-owner occupied as long as the funds are used for investment and/or business purposes. Our business purpose cash-out loan program provides financing for 1 to 4 years on a loan amounting from $50,000-$2.5mm+.
Business Purpose Cash-Out Program:
This Cash-Out Program Is Used to Draw Equity from A Subject Property for A Business Purpose. The Property Collateralized Can Be Owner-Occupied or Non-Owner Occupied as Long as The Funds Are Used for Investment And/or Business Purposes. Our Business Purpose Cash-Out Loan Program Provides Financing For 1 To 4 Years on Loan Amount From $50,000-$2.5mm+.
A Real Estate Investment Portfolio Could Provide the Base of a Solid Financial Future. However, Budding Real Estate Investors Often Face Challenges in Finding the Financing They Need. That’s When Understanding Owner-Occupied Properties Can Come in Handy.
What an Owner-Occupied Property Is and How It Can Be Useful to Investors.
What Does “Owner-Occupied” Mean?
An Owner-Occupied Property Is a Piece of Real Estate in Which the Person Who Holds the Title (Or Owns the Property) Also Uses the Home as Their Primary Residence. The Term “Owner-Occupied” Is Commonly Associated with Real Estate Investors Who Live in A Property and Rent Out Separate Spaces to Tenants.
Owner-Occupied Properties Provide an Opportunity to Tap into Attractive Financing Options. After All, Most Homeowners Are Able to Find Much More Attractive Mortgage Terms Than Real Estate Investors. But You’ll Still Have the Chance to Create Rental Income with The Property by Renting Out Spaces You Aren’t Using.
Owner Occupancy Guidelines
The Allure of Obtaining Owner-Occupied Property Is That You Can Enjoy the Most Attractive Financing Opportunities That Are Reserved for Homeowners, Not Investors. However, You’ll Need to Meet Specific Requirements in Order to Qualify as An Owner Occupant.
Owner Occupancy and Real Estate Investing
Real Estate Investors Can Capitalize on The Opportunity Presented Through Owner-Occupied Financing. In General, It’s Significantly Easier to Find A Lender Willing to Finance an Owner-Occupied Property Than Finding A Lender Willing to Provide Financing for A Second Property.
Real Estate Investors Often Choose to Leverage the Financing Options Available Through Owner-Occupied Financing. As A New Real Estate Investor, You May Choose to Pursue an Owner-Occupied Property That Will Allow You to Produce a Rental Income.
The Advantages and Disadvantages of Owner-Occupied Rentals
As with All Investments, There Are Some Advantages and Disadvantages to Consider with Owner-Occupied Properties.
Advantages
Investors Will Only Need One Mortgage for Both Their Primary Home and Investment Property. Managing A Single Mortgage Payment Can Be More Financially Viable Than Financing Multiple Investment Properties.
Investors Are Near Their Tenants in The Event of An Emergency. If You Live On-Site, You’ll Be Able to Handle Any Emergencies That Arise Quickly. Plus, You Can Ensure That Proper Care Is Being Taken to Maintain the Property to Your Standards.
Certain Loans Are Only Available to Owner Occupants. In Most Cases, Owner Occupants Can Tap into More Affordable Financing Opportunities Than Absentee Owners or Investors.
Disadvantages
Owner Occupancy Could Mean Living with Noisy Neighbours. A Multi-Family Property Means Living in Relatively Close Quarters with Your Tenants. With That, You Could Be Dealing with Loud Neighbours or Tenants That Are Ready to Complain While You’re at Home in Your Unit.
Owner-Occupied Investors Could Have A Harder Time Finding Renters. In Some Cases, Tenants May Be Reluctant to Live on The Same Property as Their Landlord.
Financing Options for Owner Occupants
If You Are Considering Investing in Real Estate as An Owner Occupant, You Have Access to Several Financing Opportunities. Here Are Some Attractive Options to Consider.
FHA Loans
An FHA Loan, Backed by The Federal Housing Administration, Allows You to Put Down as Little As 3.5% On A Property. Many Homeowners Choose to Pursue an FHA Loan Due to The Low Credit Requirements. Plus, You Could Even Have the Closing Costs Rolled into Your Loan.
FHA Loans Are Only Available to Homeowners That Will Use the Property as Their Primary Residence. With That, You Must Move into The Property Within 60 Days of Closing to Qualify for An FHA Loan. But You’ll Be Able to Buy A Property with Up to Two Units Through an FHA Loan, Which Opens Opportunities for Real Estate Investors.
VA Loans
VA Loans Are Backed by The Department of Veterans Affairs. This Type of Loan Is Only Available to Members of The Military or Veterans That Meet the Service Criteria.
If You Qualify for A VA Loan, You’re Able to Put Down 0% To Close on The Property. But You’ll Have to Pay a Funding Fee. VA Loans Are Especially Attractive Because There’s No Private Mortgage Insurance Attached.
VA Loans Will Allow Borrowers to Finance a Single-Family Home or A Property with Up to Four Units Which Can Double as A Rental Property. Like the FHA Loan, You’ll Need to Use the Property as Your Primary Residence If You Pursue A VA Loan. That Means That You’ll Need to Move into The Property Within 60 Days of Closing.
Conventional Loans
A Conventional Loan Is Not Backed by A Government Agency. With That, The Requirements for Obtaining a Conventional Loan Are More Stringent. In Most Cases, You’ll Need to Have a Credit Score Of At Least 620 And A Debt-To-Income Ratio of Less Than 50%.
But If You Can Qualify for A Conventional Loan, You May Be Able to Put Down as Little As 3%. As far as Occupancy Requirements, You’ll Need to Check with Your Specific Lender Before Moving Forward to Ensure You Can Qualify.
Why Happy Investments Inc?
Happy Investments Inc. Is A Direct Hard Money Lender That Originates and Funds Business Purpose Loans for Real Estate Investors and Business Owners