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Our
Mission is to provide creative problem-solving,
professional processing, and prompt funding
for our clients.
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| Loan Amount: |
$280,000 |
| Interest Rate: |
11.125% |
| Loan Term: |
15-Year |
| Loan To Value: |
70% LTV, 90% CLTV |
| Closing Time: |
Under 30 days |
The borrower had been employed at this auto repair shop
for many years. He entered into a contract with the owner/seller
to purchase the property.
The
problem that the buyer faced was that the seller was not
able to provide written proof of the income from the business.
The ideal method to prove income is for the seller to provide
tax returns, but this was not an option as this was mostly
a cash business. The lack of tax returns made it impossible
for the borrower to qualify for a conventional loan. Another
weakness of the loan request was that the borrower only
had a 10% down payment.
Our “Stated” income loan was the solution for this
loan request. However, the maximum LTV was 70% due to the
property type. Our flexible loan allowed the seller to hold
back a 20% second mortgage making this a 90% CLTV (combined
loan to value) loan.
This loan allowed the borrower to acquire the property and
business. The borrower’s intentions were to handle the income
reporting differently so that he would be able to refinance
into a conventional loan in the future. Therefore he was
willing to accept the higher interest rate needed on a Stated
Income loan since he saw this loan as a 2 to 3 year short
term solution to acquiring the property.
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