Hard Money Lending on Primary Residence

[Joshua Talamante]

I am wondering if anybody has knowledge/ideas on private lending on a primary residence. To date, I've only dealt with lending on investment property, thus falling into the business loan category. I've never done lending on a primary residence, and I understand the usury laws and such are much different. If anybody has experience in private lending on a primary residence, I would like to pick your brain. 

[Jay Hinrichs]

Quote from @Don Konipol:

Quote from @Joshua Talamante:

I am wondering if anybody has knowledge/ideas on private lending on a primary residence. To date, I've only dealt with lending on investment property, thus falling into the business loan category. I've never done lending on a primary residence, and I understand the usury laws and such are much different. If anybody has experience in private lending on a primary residence, I would like to pick your brain. 

I know relatively little of the specifics of how the SAFE Act and the CFPB apply to residential home loans, mainly because I invest and lend commercial property almost exclusively.  @Chris Seveney and @Jay Hinrichs can specific information, thoughts, and qualified opinions.

the major issue with doing loans on Owner occ.. is you must be licensed MLO and NMLS registered and then you have to follow the qualification process.. IE fully underwrite to prove the borrower can make payments etc.. CA companies do these loans frequently not all HML in CA but a hand ful do them. And go through the extra steps for the larger loans they will do there in CA.. That makes it worth it to them.  IE 1 to 5 mil dollar loans on primary residences Not many are going to do this in other parts of the country for 50 to 250k loans.