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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: |
$200,000 |
| Interest Rate: |
12% |
| Loan Term: |
3-Year interest only with a balloon |
| Loan To Value: |
60% |
| Closing Time: |
3 Weeks |
The borrower approached Financial Resources about refinancing
her car wash that she had owned and operated for two years.
Due
to a divorce, the borrower’s credit rating was adversely
affected and her middle credit score was a poor 498. Her
mortgage on the property had numerous 30 day late payments.
Additionally, the car wash sales had dropped considerably,
from previous years, due to massive roadwork in the area.
As one would expect, all of the banks that she applied
to turned her loan request down.
As a flexible and diversified lender, Financial Resources
was able to make her the loan. We focused on the fact that
her cash wash sales were presently on the rise, when compared
to the previous year. Additionally, the requested loan amount
was under 60% LTV which increased our comfort level in the
event of a foreclosure. The loan provided the borrower with
enough cash out to pay off the existing mortgage, pay off
some personal debts as well as giving her a cushion of working
capital for the business. Our loan also allowed the borrower
to roll in all closing costs and have a 6-month interest
reserve.
This loan allowed the borrower to get back on track with
the business and her personal finances. She understood that
this loan was a short-term solution to her problem. She
was then able to focus on fixing her credit and improving
the cash wash sales so she can ultimately qualify for a
conventional, low interest rate loan.
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