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RESIDENTIAL / SMALL COMMERCIAL LOAN DEPARTMENT
LOAN SPECIFICATIONS
The
program
works
for 1 to
4
residential
units as
well as
for
commercial
properties
which
have 5
or more
units.
This
program
is
offered
in
metropolitan
areas of
Denver,
Colorado;
Phoenix,
Arizona;
Salt
Lake
City,
Utah;
Albuquerque,
New
Mexico
and
surrounding
cities.
The loan
term is
for 180
to 360
days,
depending
on
property
type.
There
are NO
prepayment
penalties
and
interest
only
payments
are due
monthly.
PROGRAM
HIGHLIGHTS:
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Merchants lends up to 75% to 85% of the purchase price and
additionally
lends
up
to
75%
to
85%
of
the
improvements
that
the
borrower
estimates
they
will
make
to
the
property.
The
borrowers
are
allowed
to
do
work
to
the
property
themselves
as
it
is
not
required
that
contractors
complete
the
work.
-
Equity in other properties (known as cross-collateralization)
may
be
used
for
the
down
payment
on
the
fix-and-flip
property
so
that
the
borrower
does
not
have
to
put
cash
into
the
transaction,
provided
that
the
loan-to-value
and
other
guidelines
are
met.
-
Properties may be titled in the name of corporations,
partnerships
or
limited
liability
companies.
This
is
very
popular
with
fix-and-flip
investors.
-
Borrowers who are self-employed find the loan quick and
easy
to
qualify
for
because
the
Company
has
flexible
income
underwriting.
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No specific limits on the number of investment properties
that
the
borrower
has
financed.
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Very fast loan closings. Typically loans are approved
in
24
hours
and
many
closings
occur
within
1
week
of
approval.
Merchants'
fast
closings
often
give
the
buyer
a
competitive
advantage
over
other
prospective
buyers.
-
No prepayment penalties. Naturally, this is of great
importance
to
fix-and-flip
investors.
-
Allow partial releases of multiple unit properties.
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