For individuals that are trying to purchase a new residential property they can call home, they have the option to apply for owner-occupied loans instead of residential mortgage options. But how does this benefit you in case you qualify as one of these people?
Residential real estate loans or mortgages cover a general need: buying a new property either by investors or future owners that will use it as their home. Therefore, you can apply for them and access the funds you need but you will be missing benefits and better conditions that come from requesting the most suitable loan for your needs.
Owner-occupied loans are only for individuals that compromise themselves to use the property as their residence for at least 1 or 2 years. By doing so, it is possible to lower the interest rates, have more time for repayment, higher LTV ratio offered by the lender, and fewer requirements are needed to apply for the credit. Some lending institutions or companies offer even better conditions if you agree not to rent or sell the property for longer than one or two years.
Take note of this: if you are going to use it as your main residence in order to access the loan and obtain the benefits, you cannot rent it nor leave it alone for too long. The conditions and limitations of owner-occupied loans vary depending on the lender, but the usual terms include the previous ones mentioned. At Commercial Real Estate Loan Pros of Jacksonville, we have these credits available for any person and family in Duval County that is trying to have a space to call home all year round or feel confident about having a place to return after a few trips.
What are our terms and conditions for owner-occupied loans?
Most lending institutions in Jacksonville ask for 2 years of residence in the property you will purchase. However, we can take down this time to 12 months and allow you to, at least, leave it for longer periods of time that usually range from 1 to 4 weeks, but they cannot be back to back.
What does this mean? If you leave the property for 4 weeks and only stay in it for another one before leaving for a month again, you will lose the benefits we offer, which lead to an increase in the interest rate and changes in the term of the loan. Of course, if you meet all the conditions that you must agree to beforehand, you are free to rent and leave the property after 12 months or the time established in the agreement.
But are the benefits worth the time you will be spending on the property in case you are a person who travels a lot or has more than one residential real estate? In our case, we offer:
- 3% in interest rate—in most cases.
- 10 years of amortization.
- Longer periods of time for repayment.
- Your creditworthiness is not as crucial.
- LTV ratio is higher—up to 85%.
- Possibility of missing a few payments.
At Commercial Real Estate Loan Pros of Jacksonville, we make the benefits be a turning point for you to choose this loan as long as you are truly interested in occupying the property.
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.