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Guidelines |
Routine Requirements |
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Collateralized and Non-collateralized - Not to exceed 75 percent of loan amount. Mortgage – Up to 100 percent of mortgage balance. |
Always needed: Gross annual earned income on the application. Copy of loan agreement. For cases $250,001 or more: A financial questionnaire will be requested. |
This is debt coverage in a business environment. It is the company’s ability to repay the loan and the emerging equity in the purchased asset that allows assumption of the risk at the time the loan is extended. It is important to document any existing amount of business coverage, since this coverage may also be available for collateral assignment.
The underwriter would evaluate the loan amount, the duration of the loan, the source of the loan and the interest rate on the loan. Loans originating from non-mainstream lenders should be avoided.
All borrowers listed on the loan must have equal coverage based on their share of the business.