Can I get a hard money loan on the house I live in?

Yes, if the loan is for a business purpose: funding a business, buying an investment property, paying business debt or business taxes. MyBridge Loans funds owner-occupied business-purpose loans as a 1st trust deed up to 65% LTV or a 2nd trust deed usually up to 60% CLTV.

What counts as a business purpose?

The majority of the funds go to a business or investment use, not personal or household use. Buying a rental, capitalizing a company, buying out a business partner, paying business taxes, or funding inventory or equipment all qualify. Paying personal credit cards or a personal vacation does not.

Is this a consumer loan?

No. A business-purpose loan on an owner-occupied home is a business loan, underwritten on the property and the exit. If the use is personal, it is a consumer mortgage, which MyBridge Loans brokers in California only as conventional, FHA, VA, or non-QM.

Owner-occupied business purpose hard money loan

MyBridge Loans funds hard money loans on a home the borrower lives in, when the money is for a business purpose. 1st trust deed up to 65% loan-to-value, or 2nd trust deed usually up to 60% combined. No minimum FICO, no income documentation. Same-day answer on any scenario. Typical funding in two weeks.

Why most lenders say no to this

Most private lenders will not touch an owner-occupied home at all, because a consumer loan on a primary residence carries a heavy compliance load. The way through is the purpose of the loan. When the funds go to a business or investment use, the loan is a business loan, even though the collateral is the house you sleep in. We fund those.

What qualifies as business purpose

Down payment or purchase of an investment property.
Capital for a business you own, or buying into one.
Buying out a business partner.
Paying business taxes or business debt.
Inventory, equipment, or a commercial lease deposit.

The test is where the majority of the money goes. Paying off personal credit cards, a car, a wedding, or tuition is personal, and that is a consumer loan. Tell us the use up front. We will tell you which side it falls on.

Terms

1st trust deeds 9.5% to 10.99% and up; 2nd trust deeds 11.99% to 12.99% and up. Interest-only payments. Usually 1.5 to 2 lender points plus broker, 3-year note, 3 to 6 month prepayment penalty. Loans from $100,000 to $4,000,000 and up. Underwriting $1,995, no processing fee, third-party appraisal, title, escrow and credit at cost. Exceptions available. Owner-occupied business-purpose lending is currently available in California, Colorado, Connecticut, Florida, Illinois, Kentucky, Massachusetts, Missouri, Montana, New Jersey, New Mexico, Ohio, Oklahoma, Pennsylvania, Tennessee, and West Virginia, with new states added regularly. California is where we are most flexible.

Funded examples

City and state only, no borrower information.

Manhattan Beach, CA. $1,570,000 owner-occupied bridge loan.
Murrieta, CA. $536,220 owner-occupied 2nd trust deed.
San Jose, CA. $500,000 2nd trust deed on an owner-occupied single-family residence.
Bellflower, CA. $454,000 owner-occupied business-purpose 1st trust deed at 64% LTV, 10.99%, 36 months.
Irvine, CA. $380,000 owner-occupied 2nd trust deed.
Newport Coast, CA. $326,500 owner-occupied 2nd trust deed.
Oceanside, CA. $145,000 owner-occupied 1st trust deed.

How to get a quote

Send the address, value, amount owed, loan amount, FICO, and a plain description of what the money is for to the scenario form, or call 949-463-9898. You get a yes, no, or what's missing the same day.