LIMITED INCOME VERIFICATION BUSINESS LOANS
|LOAN AMOUNT||- Minimum: $25,000
– Maximum: $500,000
|Loan Term||5 Years – 25 Years|
|RATE||- Fixed Rate
– Adjustable Rate
|ARM INDEX||Wall Street Journal Prime|
|PREPAYMENT PENALTY||- 5% Months 1-12
– 4% Months 13-24
– 3% Months 25-36
– 2% Months 37-48
– 1% Months 49-60
|PERSONAL GUARANTEES||Personal guarantees are required on all loans.|
|MAXIMUM COMBINED LOAN TO VALUE||CLTV’s considered up to 80% on a case by case basis|
|MINIMUM PROPERTY VALUE||$75,000 OR $12,000 per unit|
|LIEN POSITION||First liens on primary collateral|
|OCCUPANCY||- Owner Occupied
– Non-Owner Occupied
|CASH OUT REFINANCES||Maximum cash to borrower is $150,000|
|BORROWER QUALIFICATIONS||Full income verification is not required. Borrower is required to describe the type of business & provide relevant documentation to prove how income is generated.|
|CREDIT QUALITY MORTGAGE||- Mortgage must be current.
– Mortgage must have been rated for at least 24 months. Mortgage rating must not have more than 1 30day delinquency in the past 12 month period.
|CREDIT QUALITY CONSUMER CREDIT||Majority of accounts must be paid “AS AGREED” Limited 30 day delinquencies allowed with explanation.|
|CHARGE OFFS/ COLLECTIONS/ BANKRUPTCIES||- Charge offs are not allowed in the prior 12 month period. Charge Offs over $500 are not allowed in the period between months 13-24.
– Bankruptcies are not allowed in the prior 2 year period.
|FINANCIAL REVIEW||- 3 primary business/trade references may be required.
– The existense of the business for at least 3 years must be documented.
– Business tax returns for the past 2 years required
|RESTRICTIONS||- Corporate or business losses cannot exceed 5% of gross sales
– No start up ventures.
|APPRAISALS||An Apex obtained appraisal is required on all properties.|
|ENVIRONMENTAL||- All loans must have an environmental questionnaire completed.
– All loans require the payment of an Environmental Processing Fee of $500-$1,500.
|AGE OF DOCUMENTATION||- Credit documents cannot be more than 90 days old.
– Appraisals must be less than 60 days old at the time of closing.
|ELIGIBLE PROPERTY TYPES||See attched LTV list|
|INELIGIBLE PROPERTY TYPES||
OWNER OCCUPIED/NON-OWNER OCCUPIED
|Single Family Residence (additional collateral only)||70||65|
|2-4 unit property||70||65|
|5-9 unit property||70||65|
|10-25 unit property||70||65|
|Mixed Use (1 commcl & 1-4 unit resi)||70||65|
|Mixed Use (commerical & residential)||70||65|
|Professional Office Space||70||65|
|Retail Store (Free/Strip Standing)||60|
|Mobile Home Park||60|
|Office/Warehouse||55 + 65 BPS|
|Church/House of Worship||60|
|Garage/Storage||50 + 150 BPS + Primary Residence|
|Auto Repair/Auto Body||55 + 75 BPS|
|UNDERWRITING DOCUMENTATION REQUIRED||1. Summary sheet
2. COMPLETED 1003 application
3. Credit report