Author Archives: Shawn Molem

California VA Loan Requirements & VA Eligibility

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Category : California VA Loans

California VA loans are allowed for purchase of an owner-occupied home, for the refinance of a current VA loan (even if it has been converted to a rental or second home), and sometimes allowed for conversion from another loan type (lender restrictions apply).  In general, California VA Loan Eligibility Requirements are met if you qualify under one of the following:

Active Duty:

  • Not dishonorably discharge
  • Active duty during war time: 90 consecutive days
  • Active duty during peace time: 181 consecutive days

Veterans: honorably discharged and served

  • Active duty during war time: 90 consecutive days
  • Active duty during peace time: 181 consecutive days

Reservist:  minimum 6 years ‘service in any of the following:

  • Army National Guard
  • Army Reserve
  • Air National Guard
  • Coast Guard Reserve
  • Navy Reserve
  • Marine Corps Reserve
  • Air Force Reserve

Spouse of Active Duty or Veteran

  • Un-remarried and serving spouse died while in service or from service-connected disability
  • Serving spouse was MIA or POW

Hard Money – Is it really hard to get?

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Category : Hard Money Loans

Hard money isn’t really hard, rather it is the best option for you to choose if you are looking for a much simpler way to get a loan. Hard money is typically the easiest money to get.

There are hard money lenders that may ask for complete information about the borrowers or a few may get ready to lend the money by just knowing the basics of the borrowers. The assets on which the hard money lenders are lending money on is of utmost importance for the hard money lenders.

They are taking their security based upon the assets, not necessarily based upon the borrowers. That’s where they get the terminology “hard” because they lend money that is based upon the hard assets.

The two most important things that one should know about hard money are:

The hard money loan is not a signature loan:

You say, please give me a signature loan. I have good credit scores, job, work history. I am really going to get a loan without any collateral and there are no hard assets. That’s called a signature loan, where you don’t have anything that you are tying your security to it. That’s not hard money.

That’s something that you should ask your bank to do and your bank is going to look at your credit, job history and all kinds of stuff and they are going to determine based upon you, not based upon your collateral because you don’t have any.

The hard money loan is not a Title loan:

Hard money loan is also NOT a title loan. Typically, a title loan is like if you have a car and your car is clear and you want some money of that. You go, give them your title and they’ll give you some money based upon that. Then, you will pay them off down the road.

That’s the title loan and has nothing to do with hard money loans. Hard money lenders have nothing to do with cars or anything else like that.

That’s kind of the differences when it comes to hard money lenders. There are business hard money lenders and real estate hard money lenders. You will be going to make sure if it’s tied to real estate, then you need to work with a real estate hard money lender.

Frequently Asked Questions about VA Mortgage Loans.

Category : Home Loan

Q: My parent is a veteran. Can I obtain a VA loan if I have not served in the military myself?
No, the VA loan benefit does not extend to a veteran’s children.

Q: What is required to prove my record of military service?
Veteran or former National Guard activated for Federal Active Service, your DD214; for active-duty, a Statement of Service from your commanding officer; discharged National Guard, never activated for Federal Active Service, either NGB Form 22 or 23.

Q: My spouse who has passed away was an eligible veteran. Am I eligible for the home loan benefit myself?
A surviving spouse is eligible if they have not remarried, and the eligible veteran died during active-duty service or as a result of a service-related disability.

Q: Is a VA loan better than a conventional mortgage?
In many cases, yes. VA guaranteed loans often offer a lower interest rate than conventional mortgages, unlike conventional and FHA loans, they do not require monthly mortgage insurance when borrowing more than 80% of a home’s value, and getting approved can be easier than with other loan types.

Q: How long does it take to get approved for a VA loan?
It varies depending on the current workload of your lender, but it is typically the same as for conventional mortgages. An approval to purchase can come in as little as 2-3 days. Once you’re in contract to purchase, the closing process will take anywhere from 3 weeks to 45 days.

Hard Money for Instantaneous Monetary Needs

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Category : Buying & Selling Tips

Are you in search of instant finance? If the promoter of your dream house is selling it to someone else because of your delayed payment, hard money loan is the best alternative for you. It is the best choice when you are not in a position to delay your payments. Not only in case of buying a house, but even if you desire to establish a business for leading your life or expanding the already existing trade, it will serve your purpose. In short, for any purpose that requires immediate payment, hard money appears to be an ideal option.

Almost every finance seeker prefers obtaining traditional bank loans over hard money options. The main reason behind this is the long time taken for the applications to get approved. In case of instant needs, if one would wait for the bank loans, he will surely miss the purpose for which he applies for it. However, if you have time in hand, you can wait for the traditional bank loans to get approved. Hard money loans are considered as one of the most effective solutions when someone requires the fund immediately.

When you apply for a bank loan, the lenders ask you to submit various official documents along with the application. The lending institutions do not tolerate defaults on loans and hence they require doing proper verification. These credentials are submitted for the same purpose. The credit record and the salary statements are checked and the chance of an applicant of defaulting on loans is identified. Depending on this analysis, the lenders decide whether to approve or reject the application of a particular person. No such process of verification is involved in case of hard money loans. You can apply for hard money loans without submitting anything with the application.

The reason behind the hard money loans being free from such verification is its nature of being collateral-based. An applicant must possess a property in return, to which, he or she could receive the finance. Everything depends upon the asset of the applicant and not on his credit history. This is because the lenders, get something as a guarantee, which they can sell if the borrowers do not repay the debt on time. Before giving a positive response to your application, the lenders would visit the property to see whether you are eligible to get the amount that you require. Based on the condition of the asset, the hard money lender decides on the sum you are eligible to receive.

The Importance of using Hard Money to buy Real Estate

Category : Buying & Selling Tips

Real Estate is a business about selling, purchasing and renting out a property in a specific area. This business has many stakeholders involved in it like buyer, seller agent, investor, etc. This business involves a lot of money transactions. The investor invests a huge amount of money in different projects that include commercial real estate like investing in golf area or building a restaurant, or it can be an individual real estate.

The question arises that if anyone wants to start investing in the real estate business or want a loan to complete his dealings then what are the different options? There are two or three options for him. The first option is that he should apply for a traditional bank loan. As we all know that it is long and exhausting process in which an individual first apply for a loan and after that he will wait for a long time in which his income is verified and bank completes all its requirements and decides either the person is eligible for a loan or not. During all this time the investor or borrower is in the situation of uncertainty that his request of the loan will be accepted or rejected. Therefore, they choose an alternative way to complete their needs and requirements and that is hard money loans. Hard money loan is a special type of loan which is backed by the value of property, not by the credit worthiness of the borrower.

As a real estate investor or if you want to buy a real estate then you can take loan from hard money lenders. Hard money lending companies are operating in a very different way as compared to other banks. Since these companies are owned by private individuals so they give more attention to their customers. This lending process doesn’t require income verification form you and it doesn’t require large documentation process needed for applying a loan. Another advantage is that hard money lending is a fast process so it saves time of customers and investor.

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