A loan that is underwritten with the condition and value of the property as the primary criteria for approval. Secondary issues may include the credit of the borrower to repay the loan and/or the ability of the borrower to manage the property or sucessfully complete a rehab & sell the property. Owner occupancy, debt ratios and other issues are seldom a factor. Appraised value is used than purchase price to determine value. Quick approval & funding in a pinch with the tradeoff of high % rates (12-18) & high points.(5-10)Hope this helped.
Comments(0)
A loan that is underwritten with the condition and value of the property as the primary criteria for approval. Secondary issues may include the credit of the borrower to repay the loan and/or the ability of the borrower to manage the property or sucessfully complete a rehab & sell the property. Owner occupancy, debt ratios and other issues are seldom a factor. Appraised value is used than purchase price to determine value. Quick approval & funding in a pinch with the tradeoff of high % rates (12-18) & high points.(5-10)Hope this helped.
thanks so much