Avatar's Blog

» Supporting Your Ability to MAke Monthly Payments

Posted on 6/6/2005
As another means of determining whether borrowers can afford monthly payments on hard money loans, Avatar looks at the past two year's tax returns for applicants. The purpose is to see whether the borrower has reported other income sources that should be taken into account for the purpose of the loan. It does not mean that other reported items will be used as collateral, or that they must be in some way be associated the with the loan request. Tax returns simply help provide a more complete picture of the financial status of the borrower. When tax records and P&Ls are widely divergent, a written explanation is appropriate in support of your loan request.
Posted in Miscellaneous