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| Sub-prime
loans |
| Sub-prime lending
(also: B-Paper, B-tier, non-prime, near-prime, special finance,
second chance lending) describes loans to customers having
a credit score below 620. Typically, sub-prime customers
are those who do not qualify for prime market rates because
of a blemished or limited credit history. Sub-prime customers
are therefore charged a higher interest rate, to compensate
for the increased probability of future default.
Sub-prime loans are riskier loans in that they are made to
borrowers unable to qualify under traditional, more stringent
criteria due to a limited or blemished credit history. Sub-prime
borrowers are generally defined as individuals with limited
income or having FICO credit scores below 620 on a scale
that ranges from 300 to 850. Sub-prime loans have a much
higher rate of default than prime loans and are priced based
on the risk assumed by the lender. |
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| Stated income loan |
Loan
programs that do not require income stated on the loan
application to be verified are
called "stated income loans" or "no-income-verification
(NIV) loans". These programs are for borrowers who are
employed, have good credit and sufficient income, but who
cannot satisfy the income documentation requirements of full-documentation
loan programs. We also offer "stated income, stated
asset" loans at the same rate as full documentation
conforming loans to streamline the process for borrowers
with high credit scores (generally 720 or above).
Applicants
must be employed and state their income truthfully on
the application
relative to the lenders definition of "income".
And the stated income must be reasonable for the applicant's
stated occupation. Applicants may not overstate their income
in order to qualify for a loan program that they would
not qualify for if they had stated their income truthfully.
Borrowers who have insufficient income or employment to
qualify for full documentation loan programs may apply
for "No Ratio", "No Doc", or "No
Income, No asset, No employment" loan programs.
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| Refinance |
Refinancing refers to applying
for a secured loan intended to replace an existing loan secured
by the same assets. The most common consumer refinancing
is for a home mortgage.
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| Refi – See Refinancing |
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| Investment properties |
| A property that is not occupied
by the owner, usually purchased specifically to generate
profit through rental income and/or capital gains. opposite
of non-investment property. |
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| Hard money loans |
| A hard money loan is a specific
type of financing in which a borrower receives funds based
on the value of a specific parcel of real estate. Hard money
loans are typically issued at much higher interest rates
than conventional commercial or residential property loans
and are almost never issued by a commercial bank or other
deposit institution. Hard money is similar to a bridge loan
which usually has similar criteria for lending as well as
cost to the borrowers. The primary difference is that a bridge
loan often refers to a commercial property or investment
property that may be in transition and not yet qualifying
for traditional financing. Whereas hard money often refers
to not only an asset-based loan with a high interest rate,
but can signify a distressed financial situation such as
arrears on the existing mortgage or bankruptcy and foreclosure
proceedings are occurring. |
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| Hard money – See
hard money loans |
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| Construction Loans |
Construction loans are designed
to help individuals build or remodel their homes. The loan
is built around an appraisal, land value, scope of work (new
construction vs. renovating), a construction budget, the
borrower's credit and assets.
Construction loans are more complex than purchase loans
because of many factors. These include establishing an
accurate budget,
finding a contractor, receiving an appraisal that justifies
the cost, and having the financial strength to secure
the loan. Construction loans also encompass the payoff
of the
building site. Because construction loans are complex – and
risky – they often carry higher interest rates
and closing costs than a refinance or purchase loan.
Some construction loans only cover the actual construction
term, while others are called “construction to permanent” loans.
A construction to permanent loan means once the home
is finished, the borrower modifies to the permanent financing
of their
choice. This can be the most favorable choice since there
is only one set of closing costs.
Funds are taken from the loan through a process referred
to as a “draw.” A draw is the method by which
funds are taken from the construction budget to pay material
suppliers and contractors. Each lender has different
requirements for processing a draw. For example, some
allow the borrower
to request draws online, while others require paperwork
and periodic inspections.
Construction loans usually last for 12, 15, or 18 month
terms. During construction, interest payments on the
project are
paid through the loan. An “interest reserve” is
set aside in the loan to make payments for the borrower.
So, while building a home, a borrower is not required
to make payments on the land or project. |
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| Mortgage loan |
| It
is the generic term for a loan secured by a mortgage on
real property; the "mortgage" refers
to the legal security, but the terms are often used interchangeably
to refer to the mortgage loan.
Mortgage loans generally
refer to a loan secured by residential property, often
for the
purpose of acquiring the residence. Mortgage loans may
be lower priced than other forms of borrowing because the
value
of the property reduces risk for the lender.
Mortgage lending is the primary mechanism used in many countries to finance private
ownership of residential property. |
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Expansion
at Current Facility |
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Expansion
at a New location |
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Advertising
and Promotional |
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Purchasing
New Equipment |
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Working
Capital |
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Renovations |
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Procuring
Inventory |
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Emergency Finance
Requirements |
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| Our business cash advance program offers following
pros over a business loan |
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24
hours Approval |
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90%
Approval Rate |
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Bad
Credit OK |
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Funds
are provided in 7 days or less |
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No
Upfront Fees |
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Fast
Funding |
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No
Tax Returns Required |
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No
Fixed Payments |
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No
Closing Cost |
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