Loan Types

Land Loans—The industry average has been 50% loan to value (LTV) but that can vary greatly.  There is a big difference in valuing land which needs rezoning or permits and land which has all the entitlements and is ready for a building permit.  We need to talk to you about a number of things before we can set the LTV

 

Improved real estate—The industry standard is often quoted as 65% LTV.  Again, as in land loans, it can vary.  There is no reliable check list. Call us and you will be talking to a decision maker.

 

Construction loans—Yes, we make construction loans, but only on the island of Oahu.  The industry standard is that, in addition to meeting our loan criteria, you have a licensed contractor, a performance bond and enough of your own equity in the project.  If you don’t have all that, but your loan makes sense anyway, tell us about it. We will make the effort.  Typically, we release the construction funds in phases as the construction progresses.  We can work it out together.

 

Cross collateralized loans—If our parameters aren’t met, the loan can qualify by adding other property as additional collateral.  We are always looking for a way to make the loan.  Remaining equity in other mortgaged property is not usually acceptable.

 

Bridge loans—For loans for less than 6 months, the loan fee or points tend to be higher.

 

Borrowers in foreclosure or bankruptcy—No problem.  If you have sufficient equity to protect and our lending criteria are met, we can do it.

 

Acquisition from a foreclosure auction—Yes.  But the value for LTV purposes is your purchase price, not the value of your bargain.  However, we will consider an equity sharing arrangement if your acquisition is substantially under market.  If you are targeting on a particular foreclosure, let’s talk about it well before the auction so you can know what financing you can count on Take note: Under no circumstances will we agree to 100% financing. You must have some substancail skin in the game. .

 

First mortgages on owner occupied homes—Yes we can make those loans if the loan is primarily for commercial purposes (other than for personal, family or household use).  The commercial purpose must be documented.

 

Second mortgages —Sorry, that we can’t do. However, if you are sitting on a small very low interest loan, we may be able accept a second mortgage. How small of a loan? How low the interest rate?....call me.