Vision Mortgage Company, Ltd. - Founded by Armando G. Barbosa


Non-Conforming Commercial Funding

Program Highlights Include:
 
• Stated Income - Stated Asset:
Tax returns are not required under this form of funding. The income is merely stated by the borrower on the application form. It must be reasonable for the type employment or business but it does not have to be verified.
• Loan Amounts:
Loans to $400,000
Loans to $1,000,000
(Loans over $400,000 may require special income documentation and/or exception)
• Loan Types and Terms:
Purchase money for new business acquisition and refinances of existing business are allowed. The general amortization terms allow for 15 and 20 years; fixed or lower rate adjustable rate mortgages are available.
• Lending in the Name of Corporations, Trusts or LLC:
Typically, loans are only allowed in individual names. The Non-Conforming Commercial Funding sources do allow for loans in the name of corporations, trusts, and limited partnerships.
• Seller Seconds to 90% Combined Loan-To-Value (CLTV):
Conforming commercial funding will generally allow for the seller in a purchase money transaction to carry a second lien. As a general rule they will not allow the loan to value (LTV) and CLTV (all loans against the property) to exceed 80% LTV. The sources associated with Vision Mortgage Company, Ltd. allow the seller to participate in the financing to as much as 90% CLTV. This means that financing could be set up, for example, as 65% first lien funding and 25% second lien funding. The borrower would have a 10% down payment.
• Gifts of Equity:
A gift of equity in commercial transaction can help facilitate sale of businesses within family members. Suppose that an individual owns an automotive repair shop. If that person were ready to retire but did not want to sell the business to just anyone, he could sell it to his son and the normal down payment could come in the form of a gift, therein a gift of equity.
• No Employment Seasoning:
There no minimum length of employment associated with this stated income product. Conforming commercial funding would generally require a two-year history of employment before it could be considered qualified income.
• No IRS 4506 Requirements:
This is a form that allows the lender to verify or otherwise substantiate (through the IRS) the income that has been placed on the application form. Some stated income investors require this form be signed. Our source does not require a 4506 form.
• Unlimited Cash-Out Refinance:
There is no maximum limit to the amount of cash that may be withdrawn from a project. The only limitation would be within the confines overall loan to value.
• Inherited Properties with Cash-Out:
Businesses that are inherited sometimes require cash infusions to take the business to a increased level of sales or production. Conforming lenders may require a ownership seasoning period before loans will be allowed. The Vision Mortgage Company, Ltd. sources allow for immediate cash-out scenarios (within the scope of the program parameters and loan to value limitations).
• Blanket Mortgages:
Conforming lenders will generally want to structure a single loan for each address or legal description. The Vision Mortgage Company, Ltd. sources allow loans to cover adjacent properties with one loan. This procedure would allow for the economies of scale that surround having a single appraisal, environmental study, and other similar required documentation.
 
Property Types Include:
• Retail, Offices, Warehouses, Self-Storage
• Five or More Units (i.e. Apartments)
• Mixed Use Commercial Properties
• Restaurants, Taverns, Hotels, Motels
• Special Purpose/Unique Properties

Credit, Income, and Other Challenges
• Bankruptcy or Foreclosure
• Liens, Judgments, Collections (may be waived if not on title)
• Cross-Collateralization


How you can apply for Non-Conforming Commercial Funding:

• Pre-Steps:
☺ Tell Us About It: Take the time to describe your project in full detail. A written proposal helps to put things in perspective for both you and the lender. If there are any significant issue dealing with credit, the property, or the business, put them in writing for clarity and definition.
☺ Decide on the Players: While this program allows for stated income, the best terms are afforded borrowers with reasonable credit (600 credit FICO score). Therefore, determining the loan principals is extremely important. In the case of conforming commercial funding, the “players” are rather cut and dry, i.e. the individuals with the great credit, stellar tax statements, and lots of money in the bank. In the case of Non-Conforming Commercial Funding, we are looking for reasonable credit and a property that will appraise well. In the case of a refinance transaction, we are looking for is an ownership interest in the property being refinanced—along with the reasonable credit and secure real estate.
 
• Step 1: Complete the 1003 (Residential Loan Application).
• Step 2: Provide authorization and the $60 fee so that Vision Mortgage Company, Ltd. can order your tri-merged credit report.
• Step 3: Your Vision Mortgage Company, Ltd. loan officer submits your information for a "scenario review" by our investor source(s).
• Step 4: A "terms offer" will be received by Vision Mortgage Company, Ltd. and those terms will be available for review and acceptance by the borrower(s).
• Step 5: We are now at the point of supplying supporting source documentation as directed by the lender’s underwriters including but not limited to the property appraisal, the environment study, a title commitment, a property survey, and other requested documentation.
• Step 6: Once underwriting guidelines are met, title and closing conditions are cleared, we are ready for loan funding.
 
For more information, contact your Vision Mortgage Company, Ltd. loan professional.


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