FMC Lending applies a “common sense” approach to underwriting, focusing on the property that you own, rather than on what you "owe"
FMC Lending has the flexibility conventional financing like your traditional banks don’t- we loan to borrowers with higher risks of default, unverified sources of income, high debt ratios, or simply borrowers needing cash out quickly. We understand your financing needs are not just numbers on a page, but rather a situation that needs attention and most importantly a solution. We are here to find you a creative financing solution that can help you get financing when you need.
We finance borrowers with A through F credit and will not deny you based exclusively on credit score, self-employment, foreclosure, bankruptcy, payment history, title held by corporation or trust, property currently listed, etc.
Our criteria is simple…
· You are looking for Residential, Multi-Family, Commercial or Construction/Rehab Financing
· You have an asset to collaterize or assets to cross-collaterize
· Your asset(s) value have at least 30% equity
· You can show ability to repay the loan
FMC Lending "MAKE-SENSE" Underwriting Approach
When underwriting "equity-based" loans, we focus on the following:
1) What is the chance that the borrower will default? To answer this question we look at the borrower’s willingness to pay based on past or present credit history and borrower’s ability to pay based on income verification and stability or resulting profits.
a. Credit History - Reasons for any derogatory credit situation and have those credit problems been resolved. We need to verify that the cause of the prior credit concerns have since been resolved or will resolve as a result of the loan.
b. Income/Debt Ratio – We look at if the borrower’s income is verifiable, how long the borrower has been receiving this income and what the relationship is of such income level to his/her current and future debts. This helps borrowers because for example, our loan may create substantial monthly savings for the borrower. In this case, we can allow for a higher debt ratio than conventional lenders can.
c. Loan Common Sense- Does the loan make sense? Does the loan benefit (save money, cash out or prevent default situation) or hurt the borrower?
d. Higher Payments - If an applicant has not been able to make their present mortgage payments and a new loan would result in higher monthly obligations then we need to justify the ability to repay the higher loan. For example, borrowers are unemployed but expect to be working shortly or borrowers experienced some emergencies that constrained their finances temporarily. Sometimes these financial challenges are temporary and a new loan would allow the borrower to get back on their feet. However the borrower does need to show an exit strategy.
2) In the event of default where the borrower will not be able to pay, what is the chance of loss of money? To answer this question we look at the following criteria…
a. How true is the current appraisal? Is the subject property compared to similar properties close in size, location, amenities, etc. or are you left questioning what the real value is? Is the property at the low or high end of the average neighborhood value range: If the property had to sell today what would it sell for?
b. What condition is the property in- pride of ownership, move-in, tear down, remodeled, etc.? How much would it require prepare the property for resale?
c. How long will it take to sell the property based on marketability, location, amenities, or other factors?
d. What is the equity amount or the loan to value in the property currently?
With flexibility like this - call us at (888) 297-4440 today for a quick quote!
Or email us 24/7 at email@example.com