INCOME GUIDELINES

Income is one of the components that we are required by law to take into account when lending a loan to a Borrower.

We do consider our Borrower’s’ income when we are in the process of lending a loan to a Borrower.

Income can be broken down into two major categories:

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:

  • A recent Paycheck Stub
  • Two years W2’s

We then use the information on the paycheck stub and the W2’s to calculate a monthly income for our Borrowers.  If some of the monthly income is from commission, bonus or simply overtime payment, we don’t have to have a full two years of income payment history to our Borrower from their employer in order to consider the income for qualifying purposes.

Self-Employment income

This can be a little more difficult to calculate, since there are so many variables and ways that self-employed Borrowers can earn money.  We might ask for 2 years tax returns and a Profit and Loss (P & L) statement.

We are not constrained by regulations and government oversight that restricts the Big Banks and large institutional lenders from offering a loan to self-employed Borrowers.  Under certain circumstances, we  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 do it, but we can.  We are aware that often there are times that our Borrower’s income documentation doesn’t reflect the total amount of income generated and received by our Borrowers.

Our credit counselors are available at (818) 422-9253 to assist you in reviewing your monthly income and how it will be calculated when we’re considering lending you a loan.

We really want to help you get the money you need.


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CREDIT GUIDELINES

Credit is one of the factors that we consider when we receive a Loan Application from one of our Borrowers. Past credit problems and even current credit marks will not deter us from lending. We lend to Borrowers who have poor credit and even credit that can only be described as bad credit. If you have ever had the need to have filed a Bankruptcy, or even have had the unfortunate circumstance of experiencing a foreclosure, we are your best choice for real estate financing.

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 the Big Banks or large institutional lenders turn down on a daily basis. We live by a different set of rules than the banks and are not constrained by cumbersome layers of management.

We base our loans primarily on the equity in the property we will be lending on, so credit is not that important to us, but can help our Borrowers in getting a better interest rate. Better credit always equals better rates. So when we are extending credit we always aim to provide our Borrowers with the best interest rates and terms based on the unique credit circumstance of our Borrowers.

The more equity that you have in your property the better it is for us to make you a loan. We perform a calculation of the value of your property and we will lend up 65% LTV (Loan to Value) of the current market value. Credit problems will not prevent us from lending money if there is sufficient equity in the property.

Since everyone’s credit history is unique we always tailor our loans to each Borrower’s specific situation. If there is sufficient equity in the property being borrowed on, then there is almost no circumstances where our Borrower’s credit will prevent us from offering a real estate loan.

The one exception is if our Borrower is currently in Bankruptcy. Under the law we are prevented from lending money to Borrowers who are in bankruptcy. When this situation happens, we only require that the bankruptcy be dismissed from the court and then we can lend the loan.

We are required by law to access a credit report for every mortgage loan we provide. While credit is not a major consideration in our lending decisions, overall outstanding debt needs to be known.

At certain times we need to confirm our Borrowers outstanding debt for calculations of income worthiness but rest assured that credit is not a major consideration in our mortgage lending decisions.

If you are not sure of what your FICO credit score is just call our office and we will be happy to run your credit for no charge, let you know your FICO score and review your credit history with you 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 we go to provide you the loan you need.
Our credit counselors are available at (818) 422-9253 to assist you getting you the money you need.


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PROPERTY GUIDELINES

 Since we are a Private Equity Lender and not constrained by needless government regulation that so often restrict the Big Banks or other large Institutional Lenders, we are able to lend on just about any type of real estate.

Our lending standards are so much more flexible than the Big Banks and other large Institutional Lenders.

The only restrictions are that we only lend on real estate, and the property we are lending on must be located in California.

There are several components of the property that we do take into consideration while providing real estate financing.  They can be broken down into two general categories:

Legal Ownership

When making a loan to a Borrower we need to confirm that the Borrower does own the property we are being asked to lend money against.  Furthermore we need to confirm if there are any other loans or liens recorded against the property.  We accomplish this task by employing the services of a Title Company, who performs the title and lien investigation on the property.  If there is ever any problems that comes up that could prevent us from lending we jump into action and work with our Borrowers, associated lien holders and any other party that need to be contacted in our quest to “Straighten Things Out” and get the title to the property “Cleared Up” so that we can move forward and offer our Borrower a real estate loan.

Physical Property

This can be further broken down into two categories:

Land, this is the part that God built, this is the ground that the structure is build on.  When the property is appraised a value component is assigned to land value in the overall appraised value of the property.  Land is not movable so land in a better location will appraise at a higher value.  The old adage, location is so important in the valuation of the property.

Structure, this is the part that man build.  It can be a house, duplex, 4 plex, apartment building, commercial building or even a single purpose building.

We do consider the condition of the property while preparing to make a Borrower a loan, but the good news is that 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 when we close our loan.

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 available at (818) 422-9253 to assist you in clearing up any possible property matters and getting you the money, you need.


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