Requirements for a Private Money Loan
Related Information: About Private Money - Loan Types & Scenarios
Before Alliance Financial Inc. will make a loan, we need to feel comfortable that the borrower can make the monthly payments and that there is an exit strategy to pay the loan off when it comes due. We need to be able to sell the loan to our private investors and the parameters they have come to expect. There needs to be sufficient equity in the property so that our investors will be protected and insured of receiving both their principal and interest. We also want to know that the borrower has a secured interest in the property, and we require that there be at least 10% of the loan amount contributed to the project from the borrowers' own pocket. Credit rating is not all as important as it is to a Bank or Mortgage Company, but we won't loan money in a scenario where the borrower and property cannot secure the debt sufficiently.
We don't do no-money down loans!
There must be equity in the property!
If there is sufficient collateral (with equity) we can loan the money!
Loan-To-Value Ratio's used by Alliance Financial Inc.
| Property Type |
|
1st Position |
| Residential 1-4 Units Non-Owner Occupied |
|
65% |
| Commercial (5+Units, Stores, Offices) |
|
65% |
| Vacant Lots (Improved Land) |
|
50% |
| Raw Land |
|
50% |
To have Alliance review your loan scenario, please complete our Loan Assessment Form.
If you have any questions or comments, please feel free to contact us.
|
