[FUNd]

In what scenario would a borrower with this credit and asset profile not get a 30 year fixed mortgage or HELOC?

[pmoney]

In what scenario would a borrower with this credit and asset profile not get a 30 year fixed mortgage or HELOC?

1) Borrower does not have 30 - 60 days to obtain traditional financing and needs to fund quickly. Residential typically takes 30 - 60 days to fund, while commercial can take even longer.

2) Borrower can't meet a lenders income requirements. Since these are business owners 99% of loan programs out there (Conventional, Government, Portfolio) will require tax returns, personal & business, to ensure they can support the payment and cap it between 43% - 50% DTI (debt-to-income). Many of those who are self-employed take full advantage of deductions / write-offs which is a common practice. This is problematic because underwriters at lenders go off of net income, not gross.

3) Borrower does not own an investment property. There are a few stated-income / reduced-documentation / bank statement mortgage programs available which bypasses the tax return issue, however, they're strictly geared towards investment properties and not primary residences due to regulations.

4) A home equity line of credit (HELOC) is not enough funding. Most home equity lines of credit are capped between $250,000 - $350,000 depending on the state of the property. If the borrower has the equity position and the revenues to support it we can make a loan greater than a HELOC can. We also offer an interest-only program.

5) We lend nationwide. There are some VERY difficult states to get commercial loans in, North Dakota & South Dakota, for example. Even if you find a lender who offers a niche program it doesn't mean it's available in all 50 states.


6) A combination of all of the above.