Why have owner occupied loans become harder to find? In this YouTube video, Ryan G. Wright explains the history behind hard money loans, why they’re hard to find, and what you can do about it.
Owner-occupied hard money loans have become less and less common. This is due to more and more regulations.
These regulations protect homeowners by making sure they are not taken out of their homes and interest rates do not go extremely high. Because of these regulations, it has taken hard money lenders out of the picture when dealing with owner-occupied. If you decide to go through a foreclosure process while on an owner-occupied loan, there is much more detail and depth to the process. This can make it very difficult.
If a person does need an owner occupied loan, then that is an indication that they are having trouble paying their bills. They will need to prove that they will be able to make the payments. Also, the lender will want to make sure there is equity available. If the person is not able to make payments, the lender will still want to make sure they can make a profit.