Capnet Solutions

The 8 Reasons Why a Loan Modification Gets Denied
https://nadiakilburn.com/why-a-loan-modification-gets-denied/

Q: Why can’t I find a hard money loan on an owner occupied residence?

A: Hard money lenders usually avoid owner-occupied properties because the moment you live in the home, the loan becomes a consumer mortgage—and that triggers strict federal and state regulations that most hard money lenders don’t want to deal with.

Did you know if you own a business and are renting, you might be eligible to purchase a building for your business no money down. The SBA 7(a) Loan Program offers a Rent Replacement Loan option, which provides 100% financing for eligible businesses. This loan is designed to help businesses that are leasing their space and want to purchase the property they currently occupy or a new property. Here's a breakdown of how it works:
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Key Features of the SBA Rent Replacement Loan:
1. 100% Financing:
o The SBA allows borrowers to finance up to 100% of the property's purchase price, including closing costs and eligible expenses.
o This eliminates the need for a down payment, making it easier for businesses to acquire property.
2. Eligible Properties:
o The property must be owner-occupied, meaning the business must occupy at least 51% of the space.
o It can be used to purchase the property the business is currently leasing or a new property.
3. Loan Terms:
o Loan Amounts: Up to $5 million.
o Interest Rates: Negotiated with the lender but typically tied to the Prime Rate plus a margin.
o Repayment Terms: Up to 25 years for real estate purchases.
4. Use of Funds:
o Purchase of commercial real estate.
o Refinancing existing debt (if applicable).
o Covering closing costs and other eligible expenses.
5. Eligibility:
o The business must qualify as a small business under SBA size standards.
o The business must demonstrate the ability to repay the loan.
o The property must be used for business purposes.

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