Our lending Criteria

Unlike most lending institutions our rules, parameters and procedures are not written in stone. We will do anything that makes financial sense. We will start our discussion with the following:

 

  • Loan to value ratio (LTV) — this is the percentage of the value of the property taken up by the loan amount. If the property is valued at $1,000,000.00 and the loan is $650,000.00 then the LTV is 65%. The amount of our loan must enough to payoff any existing mortgage, any property taxes, any other liens, our loan origination fee and the borrower's broker's fee, if any. In other words, our loan must be a first mortgage loan. We make exceptions if the prior mortgages or liens are small or if there are special circumstances. Ask us about it. Finally, the value we assign is not necessarily the apprised value. We use a “quick sale value” which is always somewhat lower than the market or appraised value.

  • Ability to service the loan—in some way, the borrower must demonstrate to us that he can meet interest payments as they become due. If it’s hard to document, let’s talk about it. Finally, if the LTV is low enough, we may be able to build in the interest into the loan. Ask us about it.

  • Exit Strategy—Show us how the borrower is going to pay back the principal at maturity.  If it is refinancing, we will always send the borrower back to the broker who referred them to us.