General Lending Criteria

Transcription

1 General Lending Criteria While we consider every loan on a case-by-case basis, following are general answers to some commonly asked questions. Please feel free to contact us with your specific scenario. Who is Gregory? Gregory is not one guy with deep pockets. We are a team of lending experts specializing in creative, non-prime loans. We are direct portfolio lenders. Funding criteria: We do not use FICO score or other credit history such as late payments, BK or NOD. The following are our three primary funding criteria: 1) LTV FIRST LIEN POSITION, Full Doc Loan Amount Owner 2 nd Home Condos Non Owner Up to $400,000 70% 65% 65% 65% $400,000-60% 55% 55% 55% $600,000 $600,000 - $1M 55% 50% 50% 50% CLTV SECOND LIEN POSITION, Full Doc Loan Amount Owner 2 nd Home Condos Non Owner Up to $400,000 65% 65% 60% NA $400,000-55% 55% 50% NA $600,000 $600,000 - $1M 45% 45% 40% NA Notes: Gregory Funding conducts property valuation at no charge. The valuation is conducted after verifying that the borrower s income meets our guidelines. *See page 3 for specific guidelines on Condo / PUD loans. 2) DTI Typically up to 55% subject to residual income test. For owner occupied properties, the borrower has to show sufficient income to make the loan payments and any other obligations: For salaried borrowers W-2 and last month s pay stubs. For self-employed borrowers 12 months bank statements and last year s tax return. We do not fund self-employed borrowers who do not file tax returns. 1

2 3) RESIDUAL INCOME Typically $1,800 plus $200 per dependent for living expenses per month. Is Gregory Funding a Hard Money lender? We are a self-funded non-prime portfolio lender. We do not fund high cost (section 32) loans. We have affordable rates and our loans carry no prepayment penalties. What loan programs does Gregory Funding offer? We currently offer 3/27, 4/26 and 5/25 hybrid ARMs, as well as short- and long-term fixed rate programs. Please check our website, for our current programs, rates, margins, caps etc. What are Gregory Funding s loan fees? Our website lists current owner occupied residential rates and fees. Our fees are: Rate discount fee (min 2pts) $29 loan doc fee $10 Flood cert fee credit report fee (typically $23 per couple) Prepayment penalty: None What states does Gregory Funding lend in? We currently serve the following states: AZ, CA, CO, ID, NV & OR. Can I get a rate lock? Rates change weekly and are good through Monday 6pm. The rate for each loan is automatically locked for 30 days from the day the full loan package is received. Does Gregory Funding require a broker agreement? We do not currently require broker agreements. There is a broker submission form on our website listing the documents we need for underwriting. All brokers must be licensed in the state of the borrower s property and residency. How do brokers get paid? Brokers can add up to two points to the loan cost as a loan origination fee. This origination fee must cover all of your fees however broken down (processing, admin, credit report, etc). We do not offer YSP. What is the loan submission process? Complete our fillable online broker submission form at You can submit the form by clicking the submit button located on the bottom of the form and attach ALL the documents listed on the form. Sending an incomplete submission will delay loan processing. Adobe Reader is required to view our submission form. You can download a free copy at: Alternatively, you can print out the form, complete and with the required documents to: info@gregoryfunding.com. 2

3 What is the turn-around time? Intake processing is typically hours followed (provided the loan package is complete) by Initial UW review, typically about 48hours. The more docs we receive, the faster the turn-around time. Our property valuation process takes 3-5 days. However, we do not start the property valuation process until we are satisfied with income documentation and sufficiency. Once we have all requested information, we will typically issue loan docs within 48 hours after underwriting approval. What are the loan limits? Minimum $50,000, maximum $1MM. Larger residential and commercial real estate loans up to $3.5M and up to 45% LTV can be submitted to Gregory Funding but will be handled by our commercial division, Aspen Capital Funding. Would Gregory Funding fund seconds? Seconds may be funded under the following conditions: Up to 65% CLTV for owner occupied properties. The loan amount must be at least 1/3 of the first lien. The first lien is not a private loan. The first lien is not a negative amortization or option payment loan. No seconds are offered for non-owner occupied properties. The rates are typically 2% higher than first lien loans. Note: If the loan amount needed is not greater than 1/3 of the first lien, it is still possible to borrow that amount and apply a portion of it toward reducing the first lien. What is the maximum CLTV? We have no CLTV limit as long as we are in first position and the borrower can make all debt payments. Does Gregory Funding lend on non-owner occupied properties? Yes, see Funding Criteria above. Rates are typically 7/8% (0.875%) higher than for owner occupied properties. Will you fund Condo & PUD (Planned Unit Development) loans? Yes, based on the following: Condo project must have 65% of the units sold. Not applicable to PUDs. Condo project must be Fannie Mae approved. Completed Homeowner s Association Certification must be prepared by the HOA.* *Several items listed on the HOA Certification will not be applicable for PUD properties. 3

4 Would Gregory Funding fund a purchase? Gregory Funding will fund a purchase provided the following conditions are met: For owner occupied properties the purchaser has a down payment of at least $5,000. For non-owner occupied or investment properties the down payment is at least 5% of the purchase price. The amount of required down payment may vary with the specific purchase scenario. The loan meets our LTV, DTI, residual income and all other guidelines. Seller carry-back is OK as a second lien. There is no CLTV limit but Seller carry-back will not be considered a down payment. Rates for purchases are 1.25% higher than refinance rates. Is there a title seasoning requirement for refinance? There is no title seasoning requirement Do you fund commercial real estate loans? Aspen Capital Funding, our commercial real estate division, can lend up to $10M. All loans must be secured by real estate. For information on large commercial real estate loans please visit The following are the terms of small balance commercial real estate loans: Loan amount: Up to $600,000 LTV: Up to 65% with full docs. Loan term: up to 36 months Loan fees/rate: Generally 6% fee and 12 % interest rate. Depending upon the complexity of the loan, additional document preparation fees range between $180 and $1080. Rates and fees are subject to change. The loan can be made to the business with personal guarantee of the owner(s) or to the property owner(s). The Type of business occupying the property is subject to approval. We do not loan to businesses with environmental contamination or potential for environmental contamination (e.g. auto shops, gas stations etc). Rehab loans - is the LTV off the finished value? We fund rehab loans in Portland, OR areas. The loan will be based on a combination of the current value, amount needed to finish the rehab and the estimated finished value. The outstanding amount at any time is proportional to the as is value at the time. We can cross-collateralize with other properties owned by the borrower to achieve equity thresholds. Does Gregory Funding lend to estates in probate? Gregory Funding can lend only to individuals or corporations/partnership with personal guarantee by the principal(s). How about HELOCs (Home Equity Line of Credit)? We do not currently fund HELOCs. 4

5 Does Gregory Funding have a reserve requirement? We require 2-months of verified proof of reserves (PITI - Principal, Interest, Taxes and Insurance) prior to valuation. Does Gregory Funding allow interest-only payments? We may permit interest-only payments for low LTV loans. For 30-year hybrid ARM loans, the interest only period will coincide with the fixed-rate period. The LTV is really low but income is marginal. Would Gregory Funding grant the loan keeping an interest payments reserve? We may accept up to a 12-month payment reserve. Approval is on a case-by-case basis. Does Gregory Funding lend on Rural Properties? Gregory Funding does not lend on rural properties. Properties must meet the following criteria to be considered non-rural: Subject property must be residential SFR. Land use may not be agricultural and roads and utilities must be accessible. Subject property must be within 10 miles from a Primary Service Area and the PSA must have a population of 10,000 or more. Also, subject must be within 40 miles from a Metropolitan Statistical Area which is defined as having a population of 100,000 or more. Comparables must all be within 2 miles and no value will be given to land over 5 acres. Will you fund land loans? Yes, based on the following: Type LTV Fully improved (streets and utilities) urban lot or a lot in a subdivision Up to - 60% Urban land serviced by street with no utility stubs Up to - 55% Rural, unimproved land * * Only as additional collateral for a loan on another, improved property or through our commercial division, Aspen Capital Funding. Typical land loan terms are as follows: Term: 11 months with possible extensions. Extensions are subject to a fee. Fee & rate: 5 points, 9% (can be interest only). Manufactured and modular homes? Financing is available on a case by case basis up to 65% LTV on manufactured homes that are de-titled, on a permanent foundation on their own city lot. We do not lend on manufactured or modular properties in rural areas or that are older than 10 years. Log homes, Dome Homes? We do not fund loans secured by log homes or by dome homes. 5

6 Would Gregory Funding loan against a partial interest in a property? We can only loan against a whole property with the consents of all persons on title. Will you loan on more than one property? We can cross-collateralize a loan to any number of properties to get the LTV needed for the loan. There is no limit to the number of properties to secure a loan or the number of properties owned by a borrower. Can one of the property owners be a non-borrower? Gregory Funding will allow a non borrowing spouse under the following conditions: The loan is secured by an owner occupied property. The property is located in a non community property state (e.g. OR, CO) The non borrowing spouse is not on title to begin with (cannot quit claim for purpose of obtaining the loan) The non-borrower spouse will not need to fill a loan application, but will need to sign the trust deed, HUD-1, TIL and non-rescission docs at closing. Notes: Investment property loans must be signed by both spouses regardless of who is on title. When a property is vested in any number of unmarried individuals all have to become borrowers. What is your mortgagee insurance clause? Gregory Funding LLC, ISAOA Loan number PO BOX Portland, OR