Owner-Occupied Loans
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Residential real estate loans are quite popular among people in Tallahassee and Leon County overall. Therefore, whenever they need to purchase a new one as an investment or to be used, they rely on them. But what if we tell you that owner-occupied loans can be a better option?
First, you must know that all loans are different. They might be meant for the same type of financings like buying properties or remodeling, but the terms and conditions change based on what you will do in specific.
For example, if you are a real estate investor trying to purchase a new property for reselling, later on, you might find hard money loans more useful and suitable than regular ones. Why? Because they provide the funds much faster if the credit is approved. Well, the same happens when you compare residential real estate loans—or similar ones—and owner-occupied loans.
If you are someone who is trying to buy the property in order to use it as a home or residence for yourself and your family, the last type of loan will be better. Banks, lending companies, and lenders overall that have these loans available are able to offer better terms and conditions for individuals that will live in the property for at least 12 months.
The main benefit comes in interest rates: you have much lower rates compared to real estate loans overall, which opens more doors for repayment and brings flexibility. Other pros like more time to pay, higher LTV and LVR ratios, and larger loan sizes are also included. At Commercial Real Estate Loan Pros of Tallahassee, we are quite familiar with owner-occupied loans since they are one of the options available and many people in the city reach out to us to request them.
When relying on us for them, you will be able to access these specific changes and better terms:
- Interest rates will range from 3% to 7% and will be fixed for the entire duration of the loan.
- We offer more amortization time, from 5 to 30 years.
- We can finance up to 85% of the total cost of the property.
- You have over a decade to repay the loan.
- We are flexible about missing payments and collateral.
Conditions and requirements to apply for owner-occupied loans
Now, what is the trick about going for these loans? The simple fact of living in the place for at least 12 months? Yes and no. Essentially, it is about using the property as your main living space or, at least, secondary. As for the rest of the conditions or more detailed ones, they can vary depending on the lender.
In our case, we establish very specific ones but those can be negotiated during the approval of the loan and if you decide to accept it or not:
- You have to live for at least 1 or 2 years in the property—trips are allowed but you cannot leave the property alone for long periods of time.
- You cannot rent the property or use it for other purposes, just residential ones.
- Selling it is not allowed.
- You have to maintain the good condition of the property during the first 12 to 24 months.
If you are a family or person that is just trying to live in it and finally have a home, you will find the conditions quite simple. However, real estate investors better rely on the usual loans that we also have available at Commercial Real Estate Loan Pros of Tallahassee.
There are so many areas or regions where we offer these services with most of them being cities.
However, if you need any of these services, you need to contact us. The list below comprises the areas where we offer these services.