Owner occupied hard money lender

[Johanna S.]

Hello,

I am about to acquire a private loan ( 5% interest and 2 points) to buy a home owner occupied ( family house) unfortunately We are not qualifying with ours w2....we are selling our current house and making 120k of profit to use it as a down payment the problem is that we make half of our salary cash and it not showing in the w2s..if we want to qualify for a conventional loan ($450k ) we will have to declare all the cash we make for next year.
So we do not know what to do,how are we gonna pay back the hard money loan and how many years? how fast will the property appreciate and what to do in the property to make it appreciate faster? how much money do i need for closing a hml? how much money do i need for the refi process ? should i wait and apply later for a conventional loan? thank you so much to talking the time to read my post any response or comment will be very appreciate it.

[Jeremy Taggart]

@Johanna S. 5% interest isn't bad for the private loan honestly. If it is amortized over 30 years and the lender will let you keep it indefinitely then consider keeping that for longer. If not, then I would make sure you can get set up for conventional financing to refi out within the near future so you don't get stuck not being able to pay the lender off and having to pay a penalty to extend it.