- I am not a US citizen can I still
buy property in the United States?
- I do not make enough money to buy
a house?
- I have bad credit or no credit
will I be able to qualify for a loan?
- I do not have the 20% down payment.
Can I still buy a home?
- I do not know how get started.
I have heard many stories of my friends having problems?
- What if I don't have any
established credit?
- What if I have had credit
problems in the past or have filed bankruptcy?
- What if I am new on my job?
- What does "loan to value"
mean?
- What are income and debt
ratios?
- What are "Cash Reserves"?
- Is 100% financing available for
Commercial Loans?
- How long does it take to get
a Commercial Loan?
- What are the typical requirements
of a Commercial Loan?
- What is Mentor Financial Group
(“MFG”) Private or Hard Money track record?
- Who does the Private or Hard Money
loan servicing, fund control, etc.?
- What happens if there is foreclose
on a Private or Hard Money loan?
- What are Mentor Financial Groups
(“MFG”) Private or Hard Money loan guidelines?
- Are there any up front fees
on Private or Hard Money Loans?
- What information is required
to underwrite a loan with MFG?
- How fast can MFG Fund?
- Is an appraisal required?
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There is no citizenship requirement
to buy real estate in the US. US Banks will make loans
to non US citizens if the client can put 30% down
on the purchase. US Banks will finance loans to naturalized
US citizens, aliens with a SSN or Resident Aliens
at rates typically equal to comparable credit and
income US citizens.
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Believe it or not if you have
OK credit above 620 (you can go as low as 500) with
little income buyers can afford to buy in today’s
market with the programs currently available from
lenders. Interest only, negative amortization and
other loans are available to help buyers get into
houses.
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The US credit reporting bureau
and systems are difficult to understand. The US is
a credit drive lending society. Lenders will lend
to clients that have FICO scores as low as 500. Since
Lenders understand credit issues they have developed
several programs to help borrowers with no credit
or bad credit to still borrower to buy homes. Additionally,
there are no FICO programs.
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100% financing is a real loan that MFG arranges for
95% of our clients. Lenders have funds they need to
lend and will lend those to qualified borrowers.
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Buying a house is the biggest decision you will probably
make in your life. The process requires an experienced
real estate professional to be there and answer all
your questions. Please click here
to get a copy of our recent article on the top 10
real estate pitfalls you may encounter.
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If you do not have enough established credit, your
Loan Officer can work with you to document alternate
credit information. If you have been renting, we can
obtain a rental rating from your landlord as a way
of verifying your payment history. Or, we can contact
your utility companies, phone service, cable companies
or car insurance carrier to obtain a rating on your
payment history. Not all loan programs will accept
alternative documentation on your credit. There are
both government and conventional programs that will
accept this type of payment history to establish credit
qualifications.
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Your credit payment history lets the Lender know your
intentions to repay the loan. Therefore a good credit
history is important, but a perfect credit history
is not.
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A new job can work in your favor when you apply for
your loan. Loan program guidelines look for a 2 year
job history in the same field, but a job change for
a better position is looked on favorably. If you are
a recent college graduate, you may be able to obtain
a loan even though you don't have a 2 year work history.
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Loan to value (LTV) is the loan amount divided by
the lesser of the sales price or appraised value.
For example, if you are paying 15% of the total cost
of the home as a down payment, you would only be borrowing
85% of the total sales price from the lender. Therefore
you LTV would be 85%.
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The Income Ratio is your total monthly housing expense
divided by your gross monthly income (before taxes).
The Debt Ratio is your total monthly housing expense
PLUS any recurring debts (i.e. monthly credit card
minimum payment, car payments, or other loan payments)
divided by your income.
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Cash Reserves are the funds a borrower has remaining
after their loan funds. The normal requirement could
be monies equal to 2 months of the mortgage payment.
The amount of Cash Reserves varies by loan program,
but larger reserves are a strong compensating factor.
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100% financing is typically not available on Commercial
loans. Financial institutions almost always require
some equity or cash in the deal from the borrower.
MFG has special SBA, Hedge Fund and Banking Relationships
who can provide up to 90% financing.
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You should allow yourself 60 days to get a commercial
loan funded, although funding can happen in as fast
as 30 days. However, in many instances of a severe
need we have arranged for a line of credit to meet
the needs of our clients which is paid off when the
commercial loan funds.
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After the initial discussion with one of our representatives,
our Underwriting Department will contact you with
a Documentation Request. The request typically includes
the following; Application, Financial Information,
Preliminary Title Report, Purchase/Option Agreement,
borrower documentation, opinion of value (BPO) or
appraisal, and if applicable, designs and construction
breakdown, pictures of property and etc. MFG lenders
typically start with the information readily available
and collect the remaining information during underwriting.
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Mentor Financial Group funds millions of dollars of
loans each year and has never lost a penny of investing
principal or interest. Sample fundings include the
following:
| MFG
Annouces the funding of
Commercial
Warehouse
San Diego, CA
|
MFG
Annouces the funding of
Residential Refi / Construction.
San Diego, CA
|
MFG
Annouces the funding of
Residential Portfolio
Multiple US Locations
|
| MFG
Annouces the funding of
Land /
Pre-Dev Loan.
Santee, CA
|
MFG
Annouces the funding of
Residential Loan.
Las Vegas, NV
|
MFG
Annouces the funding of
Apartments.
Coronado, CA
|
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Mentor Financial Group will perform the loan servicing
on behalf of the investor for a 1.5% fee of the loan
amount/year. However, most of MFG's investors feel
comfortable doing their own loan servicing. MFG has
partnership with several companies whose business
is loan servicing, fund control, foreclosure, etc.
MFG will make introductions to our partners, as desired.
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If in the unlikely scenario that a foreclosure is
required, Mentor Financial Group has a partnership
with several of the premier foreclosure firms. MFG
stays with our investors through any and all issues
that may arise from the loan. Typically, MFG will
find new money or negotiate an extension, which earns
additional fees for investors or MFG will implement
any one of a number of potential options to service
and stand by our investor.
--------------------------------------------------------------------------------
Here are MFG’s loan guidelines;
• Loan to Values (LTVs); 50% for land, up to 65%
for Development,
Vertical Construction up to 70%
and Bridge up to 70%. Some investors
who have a keen interest in the
property from time to time will loan at
higher LTVs.
• Terms; Most loans are made for a 12-18 month term,
and sometimes
longer.
• Loans fees; Paid by the borrower.
• Geographic focus; We make loans in California
and have nationwide
contacts.
• Size; Typical loan size is $250,000 to $5 million.
We regularly see and
fund investment opportunities
over $30 million.
• Interest Rates; Typically 9-14%
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No, Mentor Financial Group does not charge up front
fees.
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After the initial meeting with one of our principals,
a loan documentation check lists is sent, which varies
by loan type. Generally speaking, to begin the underwriting
process, the following is required:
• Loan Application
• Preliminary Title Report
• Current Appraisal or opinion of value.
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The fastest funding the company has ever completed,
after receiving a complete package, was 24-hours.
Typically, loans fund within two weeks of receiving
all requested documents.
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Appraisals are not always required. Many times, due
to our understanding of the markets we serve, an opinion
of value or Broker Price Opinion (BPO) is all that
we require.
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