Credit Guidelines
Credit is one of the factors that we consider when we consider a residential, commercial, fix and flip, or probate hard money loan. Past credit problems and even current credit marks will not deter us from lending. We lend to borrowers who have poor and bad credit. Further, if you have ever filed for bankruptcy or experienced a foreclosure, we are your best choice for real estate financing. The one exception is if you are currently in bankruptcy. Under the law, we are prevented from lending money to borrowers who are in bankruptcy. In this case, we only require that the bankruptcy be dismissed from the court and then we can make the loan. Lending Guidelines
We fill the void for borrowers who find themselves needing real estate financing but can’t find a company to help them. We provide financing to borrowers that big banks and large institutional lenders turn down on a daily basis.
We base our hard money loans primarily on the equity in the property. Credit issues do not prevent loan approval but better credit can result in a better interest rate. When we extend credit, we always aim to give our borrowers the best interest rates and terms based on their unique credit circumstances.
The more equity that you have in your property, the more leeway we have in approving a hard money loan. We perform a calculation of the value of your property and lend up 65% LTV (Loan to Value) of the current market value.
We are required by law to access a credit report for every hard money loan we issue. While credit is not a major consideration in our lending decisions, overall outstanding debt needs to be known when we calculate income worthiness.
We can also run your FICO score for you at no charge. We’ll review it with you along with your credit history over the phone or in person at our office and provide you with an interest rate quote based on your credit.
If you have been mistreated by the big banks or large institutional lenders you will be very surprised by the extent at which we go to make you the hard money loan you need. Give us a call at (888) 797-7970 or complete our Short & Simple Application. We’re here when you need us most!
Income Guidelines
Income is one of the components that we are required by law to take into account when making a hard money loan to borrower.
Income can be broken down into two major categories: Lending Guidelines
Employment Income
From a lending perspective, it’s the easiest type of income for our company to consider when providing a loan since it is so easy to calculate.
We will only require:
- Recent paycheck stub
- Form W-2 (2 years)
Self-Employment Income
This can be a little more difficult to calculate, since there are so many variables and ways that self-employed borrowers earn money. We might ask for 2 years tax returns in addition to a Profit and Loss (P & L) statement.
We are not constrained by regulations and government oversight that restrict the big banks and large institutional lenders from making a loan to self-employed borrowers. Under certain circumstances, we are able to allow our borrowers to simply “State their Income” and approve their loan as a “Stated Income” loan. The big banks and large institutional lenders can’t offer that option, but we can because we know from 40 years of experience that a borrower’s income documentation, at times, doesn’t reflect the total income generated.
Our credit counselors are available at (888) 797-7970 to review your monthly income and show you how it will be calculated when we’re considering making you a hard money loan. We’re here when you need us most!
Property Guidelines
We only lend on real estate in the state of California.
There are several components of the property that we do take into consideration when considering a hard money loan.
Legal Ownership
When considering a hard money loan, we confirm that the borrower does own the property we are being asked to lend money against. We also look for any other loans or liens recorded against the property. If issues arise that could prevent us from lending, we jump into action and work with our borrowers, associated lien holders and other parties that need to be contacted so we can move forward with a real estate loan. Lending Guidelines
Physical Property
Land
Land is the ground upon which the structure is built. When the property is appraised, a value component is assigned to land in the overall appraised value of the property. Land is not movable so land in a better location will appraise at a higher value.
Structure
Structure is a house, duplex, 4-plex, apartment building, commercial building or even a single purpose building. We consider the condition of the property when considering a hard money loan but we are so much more flexible than other lenders. We will allow deferred maintenance to be present when we close our loan. We just need to confirm that no hazards exist with the property.
We are always available to review your property free of charge to see if there might be any possible problems that might preclude us from making you a loan.
Our lending officers are always available to review your property free of charge. Just give us a call at (888) 797-7970.