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Why Are Owner Occupied Arizona Hard Money Loans So Rare?

If you’ve ever tried to find an owner occupied Arizona Hard Money Loan in Arizona, you know how rare they are. Don’t fret — they do exist, but you might have to get a little creative to make one work.

To explain why these loans are so hard to come by, it’s important to understand what they are exactly. Unlike bank loans, where you’re essentially just agreeing to pay the money back based on your good financial standing, Arizona Hard Money Loans are based on collateral. In other words, you take a personal asset (like a home or commercial property) and put it up to secure the loan.

Also, hard money typically comes from private investors instead of massive financial institutions, making the terms more flexible. That’s why real estate investors and business owners use them the most.

Where we hit a snag is when the borrower intends to live at the property in question. Why? The loan is no longer intended for a commercial property or to bring in income, which puts it into more conventional mortgage territory. Being in that territory makes it subject to stricter regulations, more oversight from the IRS and third-party verification — all things that alternative lenders don’t typically have to deal with.

With the extra hoops to jump through and the increased hassle, it’s no wonder hard money lenders often don’t want to touch them.

How to Get an Owner Occupied Arizona Hard Money Loan

Despite all this, some lenders are still willing to do owner occupied Arizona Hard Money Loans. And, there are often workarounds. For example, if you want to flip a home and live there at the same time, that can be configured as a “business purpose” which make the process infinitely easier. This is where your choice of lender is important.

The Right Lender Can Make All the Difference

These types of loans are rare, yes. But they’re not impossible. Choosing the right lender can increase your chances of getting approved. In fact, it can mean the difference between getting an owner occupied Arizona Hard Money Loan to realize your real estate dreams and being left out in the cold. At Level 4 Funding, we have decades of experience and know the Arizona market backward and forward. Put our creativity and experience to work for you — give us a call or chat with us today to get started!



Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg

Broker/RI/CEO/MLO

Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis@level4funding.com

Dennis Dahlberg Broker/RI/CEO


NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701  

About the Author:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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