[pmoney]

Well thought out. Conventional refis do not take 30 much less 60 days to fund. Traditional rate locks are 15 days and in some circumstances, 30, but average funding from soup to nuts isn't more than a couple of weeks. If the appraisal had been done already, even shorter.

Soup to nuts is from the time an application is taken to the time it funds so yes it does take that long in most instances with the exception being an FHA Streamline or VA IRRRL. Being that residential is now in the TRID era the closing process has been extended a few days since the CD must be issued. Just because a rate lock is 15 days doesn't mean the process takes 15 days. Many times the rate is floated until the file enters underwriting, then the rate lock is executed since it's always better pricing. Either that or the rate is initially locked then extended; I've done both approaches, depends on the scenario and market conditions. The appraisal is part of the process and is not ordered prior to application. That alone typically takes a week between scheduling the inspection, visiting the site, and completing the actual report. On commercial loans I've seen title issues or CO issues create extreme delays, stretching closing out in the 6 - 9 month range.

Self employed individuals are not that difficult to get done these days on mortgage products. People increasingly are getting paid on a 1099 basis, which makes them self-employed, and there are hundreds of loan programs geared toward these individuals. Further, DTI is much less of an issue when your payment is small, as it would be on a 200K 30y fixed at 5-6% apr.

Coming from someone who worked almost exclusively with self-employed borrowers in the mortgage industry I can most certainly say that self-employed borrowers have far greater obstacles to overcome regarding income calculations, qualifying, and underwriting. There are many business owners I've worked with who receive 1099 income but also receive a lot of cash payments which often isn't truly reflected on the returns. Sure they could amend their tax returns but then they will have to pay additional tax and most likely a penalty.

You can't compare your product to a HELOC. There are zero similarities. Is a savvy good credit borrower going to trade a low, simple interest, monthly, long term loan for a daily payment at 27 cents on the dollar for a few extra K? Doubtful.

I completely agree, a mortgage or any type of traditional long-term financing should not be compared to a product which is considered short-term alternative financing. You specifically asked why someone with those credentials would not simply obtain a mortgage and I provided some solid reasons which may be underlying issues preventing them from doing so. Odds are if I'm speaking with a borrower that fits this program they've already exhausted all long-term options and there's something preventing them from obtaining the funds.

Never heard that's it's hard to get a loan in ND or SD. Why would that be? If it was for any reason except that it's rural in many parts, it would be considered redlining and would be illegal.

Keep in mind that I'm specifically referring to commercial loans. Bottom line is many commercial lenders, for one reason or another, do not offer loans in these states which makes qualifying unique scenarios somewhat difficult due to less options.

I dunno but, not seeing the light here..

In the most simple terms it's because 95% of borrowers with strong credentials will not have a need for short-term financing with high interest. But for those 5% who are having extreme difficulty obtaining traditional financing we provide an alternative solution and even then it may not be the best option for them.