There are differences in mortgages when discussing owner occupied and Arizona non-owner occupied loans.

An owner occupied property is the property that is your primary residence—it is what you call home. A property can have up to four units, and as long as you live in one of them—that qualifies the property as an owner occupied property. If you have a second property outside of the county you live in that is a vacation home— that can qualify as an owner occupied property. This is all determined at the time you apply for a mortgage.

A mortgage that you take out on a property that is not your primary residence is defined as a non-owner occupied property. For example, any homes you buy that you rent out to generate income would be considered non-owner occupied property.


Owner occupied properties are traditionally financed through a conventional mortgage—as long as income and credit requirements have been met. These loans usually have terms from 20-30 years and qualify for refinancing throughout the life of the loan. Depending on the borrower’s credit the interest rate can range from 3.75% to 5.5%—these rates change periodically. Most mortgages are on a fixed rate—meaning the payments and interest never change. Borrower’s typically give up to a 20% down payment, as well.

However, when taking out an owner occupied mortgage many borrowers use private money—or hard money—lenders. Because banks have strict requirements on mortgages there can be various issues even on owner occupied properties being financed with a conventional mortgage. With a hard money loan a borrower can skip the hassle of waiting on financing approval for a property that most likely will not be approved. Arizona Hard Money Lenders base the loan decision on the property as collateral. These loans make owning multiple rental properties possible. Unlike the banks who typically don’t allow more than 4 properties, a borrower can borrow for as many properties as needed as long as the collateral is there to back the loan. Banks also have higher credit requirements for property loans—a minimum of 620.

Arizona Hard Money Lenders will typically require proof of the last 3 months of income, last 3 years tax returns, along with proof of the collateral that will be backing the loan. The amount of the loan is determined by the borrower’s income, credit and will be weighed most heavily on the real estate that will be securing the loan.

Typically, Arizona hard money loans are an easy transition into a conventional mortgage. If that is part of your plan make sure to discuss this with your lender.

Yes, hard money loans have higher interest rates than traditional bank loans—but what they don’t have is lengthy approval processes and limits on owning property. If real estate investing is a career you are considering transitioning into make sure to check out a local Arizona Hard Money Lender.

Dennis Dahlber Broker Ri CEO Level 4 Funding LLC
Dennis Dahlberg


Level 4 Funding LLC 
Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177


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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