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» All About Lending Criteria

Posted on 5/20/2005

Private lenders have lending criteria as varied as conventional lenders and even more so. Here is Avatar Financial’s Lending Criteria:

  •  Loan size - $500,000 - $10 / $15,000,000
  • Location - Urban and suburban US properties
  • Collateral - Improved commercial & investment residential real estate
    (not land or construction)
  • WA & CA – residential owner occupied
  •  Rest of country - residential owner occupied if held in a corporate entity and proceeds used for business purposes
  • Rates -Prime + 7% (about 12.75% today) + 4pts
  • Terms -1-3 years (no prepayment penalties after ~6mos)
  • Max LTV -65% LTV* –
  • “value” = actual purchase price of the real estate for purchases.
  • “value” = Avatar’s opinion of the appraised value of real estate for refinances.
  • Creative: Interest only payments; blanket 1 loan over 2 or more properties; can wrap points and fees into the loan

 

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