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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;
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:
-
Merchants typically lends up to 70% of the purchase
price
and 70%
of
the
repairs
(potentially
up
to
80%
of
purchase
price
and
repairs
in
some
cases).
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.
-
No specific limits on the number of investment properties
that
the
borrower
has
financed.
-
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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