Loan Programs

Our private loans are quick-close loans based upon existing equity in the property. The reasons that borrowers and their brokers come to us change as market conditions change, but are usually because a bank loan is not suitable for some reason. These days these reasons usually are:

  • Short time to close: Such as the loan falling out with a bank 'at the last minute' on a purchase or the borrower otherwise needing funds in a hurry.
  • 'Cash, no contingency purchase': Often for REO purchases some of our borrowers buy 'all cash' and combine their down payment with our quick funding to purchase the property. Alternatively, buyers can buy all cash and close a loan with us shortly after purchase. Either of these options in this market will usually make their offer more competitive and more likely to close and/or close at a lower purchase price.
  • Weak borrower credit: Such as recent foreclosure or bankruptcy.
  • Weak borrower income documentation: Such as the borrower having been out of work for some time and recently gotten a new job.
  • Weak property income: Such as the property being only partly rented.
  • Property needs work
  • 'Unusual borrower': Such as a trust or an inter-family transfer.

Loan Guidelines:

  • Loan Amount: $50,000 to $3,000,000. Higher loan amounts considered on a case-by-case basis.
  • Use of Funds: Purchases, Rate & Term Refinance, Refinance Cash Out, Construction.
  • LTV: Single family homes, units and other commercial property up to 70% LTV on purchases and 65% on refinances. 30-50% LTV on land and lots.

  • CLTV: Subordinate seller or other junior financing generally okay. For purchases, 10% down minimum is usually required even with subordinate financing.
  • Position: 1st position loans are preferred. 2nds are considered on a case-by-case basis and usually require a lower CLTV.
  • Term: 6 months to 5 years. Sometimes longer.
  • Occupancy: Non-owner or owner for commercial property. For SFR-4units, preference for non-owner, but owner on a case-by-case basis (usually lower LTV).
  • Rates & Fees: Usually 9-14% interest-only, 3-5pts, $900 underwriting fee, $500 doc fee.
  • Credit: No minimum FICO.
  • Eligible Property Types: All kinds of residential property, commercial property and land.
  • Location: California only, with a preference for Northern California and particularly the San Francisco Bay Area.
  • Closing: 1 to 2 weeks from complete package to close.