Owner-Occupied Loans
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Residential real estate investors have many options when it comes to loans since their main purpose is just to purchase, renovate, and resell. However, individuals that plan to acquire a residential property in order to occupy it can have better conditions if they search for lenders with owner-occupied loans available.
Depending on the loan you request or aim for, you will have different terms and conditions based on the property you want to purchase, for what you need it, or what you are planning to do with the funds overall. For residential properties like regular homes or apartments, you can find many credit options through banks and similar lenders.
But putting aside the fact that they might not be the best option nowadays, standard loans always come with the usual conditions in terms of interest rates and how many years you have for repayment. In other words, you can expect not 100% the same conditions but very standard ones that even some private lenders tend to follow. Therefore, residential real estate loans are basic and do not come with special benefits. However, when you are a buyer and future owner that wants to occupy the property for at least 1 or 2 years, or you will definitely use as a permanent residence, you can access owner occupied loans that offer the same basic benefit of getting capital for the purchase or renovation, but also extra benefits.
The term “owner-occupant” refers to a person or even company that uses the residential property for the sole purpose of living in it. No renting nor reselling. When this happens, the person can rely on owner-occupied loans that come with:
- Lower interest rates.
- Higher LTV ratio.
- Longer loan term.
- Fewer requirements to meet.
- Funds for purchase and renovations can be requested in the same loan depending on the lender.
All these are compared to regular residential loans that most people can request in banks, insurances, or pension funds.
Where to find owner-occupied loans
Usually, traditional institutions or lenders like the previous mentioned offer this type of credit, but it is not too common. Also, the conditions and terms do not change that much and make you question if it is truly better to go for it instead of a regular loan. However, private companies or lenders are a different story since they stick to the additional benefits mentioned above and are open for requests from those that might be lacking in a few requirements.
At Commercial Real Estate Loan Pros of Tampa, we stay true to what the owner-occupied loans should offer you: flexibility, better terms, and the opportunity to finally get your new home without worrying about repayment over the years. You just need to guarantee us that the property will not be rented or sold for the next 1 to 3 years depending on the one you are going to purchase and its price. Also, you have to reside in it for at least 12 months with only sporadic absence. For example, when you decide to travel or do anything else that requires leaving the property alone or with someone else for a few days or weeks.
Our terms are not 100% established and can vary depending on your situation. Therefore, feel free to ask all your questions before and after your application and if the owner-occupied loan is accepted. We, Commercial Real Estate Loan Pros of Tampa, will be more than happy to help you from zero by clearing every doubt.
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.