Biz Loans & Owner Occupied Homes

Terrific news was announced by the CA DRE on September 6, 2019. It has now been clarified that Financial Code Sections 4970 and 4995 are not applicable to loans secured by a borrower's primary residence as long as the loan funds are used for a business purpose. Loans for consumer use (personal, family or household uses) are subject to these high-cost loan laws.

When banks say NO or are just too slow, this is terrific news for business-purpose borrowers.