Business and Consumer Purpose Mortgage Loans In California

By G. David Lapin On November 13 2023

Understanding The Distinction Between Business And Consumer Purpose Loans In California

When exploring hard money loan options online to address your financial needs, it's crucial to discern whether your financing requirements align with a business or consumer purpose. This distinction not only determines the feasibility of the loan but also influences the selection of a suitable lender. This article aims to shed light on the disparities between business and consumer purpose loans, providing insights to streamline your online search for the right financing.
What is a Business Purpose Loan?

Business purpose loans are exclusively designated for bona fide business needs. Examples include acquiring investment properties, funding a business through cash-out refinancing of a primary residence, or undertaking a fix-and-flip project. Most hard/private money lending sources specialize in business purpose loans rather than consumer purpose loans.
Examples of Business Purpose Loans:

Buy and Hold rentals properties
Fix and Flip
Land Loans for spec
Ground Up cnstruction for spec
Cashout refinances for business use
ADU additions for rentals

What is a Consumer Purpose Loan?

Consumer purpose loans are intended for personal use, such as acquiring a primary residence, settling personal credit card debts, or remodeling a primary residence with a home improvement loan.

For more information on our Hard Money Loans or Trust Deed Investments, call our office at 714.838.1474 ext. 102 or visit our:www.hanovermc.com

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DISCLAIMER
Hanover Mortgage Company is California licensed only. Real Estate Broker – California Department of Real Estate. Broker License #01410448 │ NMLS I.D. Number: 337458. INTEREST RATES CAN CHANGE WITHOUT NOTICE. ASK US FOR CURRENT RATE INFORMATION. BORROWERS AND PROPERTIES MUST QUALIFY. CONDITIONS AND RESTRICTIONS MAY APPLY. Loan programs, amounts, rates and terms are subject to change without notice. Loan approval is not guaranteed and all loan applications are subject to verification of acceptable credit, income, employment, lien position and value of collateral in the sole discretion of Hanover Mortgage Company. Flood and/or property hazard insurance may be required. Additional fees, conditions, restrictions and limitations may apply. Not all programs are available in all areas. The interest rate for adjustable rate mortgage loans is subject to increase. Please contact Hanover Mortgage Company to determine your eligibility for a specific loan product. Hanover Mortgage Company does not offer financing for those transactions defined as ‘Covered Loans’ or ‘High Cost Loans’ in any state or federal law. Hanover Mortgage Company is a Mortgage Broker. Mortgage Broker fees will apply unless stated otherwise. Disclosure: Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured. State law dictates that we acknowledge that interest on trust deeds is not guaranteed. No investment is completely risk free and past performance is not a guarantee of future results. Before investing, investors must be provided applicable disclosure documents. Investment Products: Are Not FDIC Insured • Are Not Bank Guaranteed • May Lose Value • Are Not a Deposit • Are Not Insured by Any Federal Government Agency.

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