A dentist in the Chicago suburbs had a lot of higher interest / short amortization debt that was killing her bottom line. Most of it was equipment leases that are usually at a rate of 15-20% APR or more for 5 years. It makes the payment quite high because of these two factors. She also had a cash-flow loan against her practice that was around 25% APR. I think that is just the worst type of loan you can have and I try to avoid it at all costs.
What she really had going for her is the fact that she owned her office condo free and clear. The bad news is that her tax returns were not sufficient for a bank to make a loan against. There just was not enough income. She felt stuck like she could not do anything except continue to bleed from those high-interest loans.
We had a solution for this based on the fact that we have a stated income loan that allows us to look at the bank statements for income verification. NO TAX RETURNS! HOORAY! Now it is even better because if the loan is a cash-out or refinance we only need an application and credit report if the loan is between 100-300K! So now it is a true “STATED INCOME” scenario! She went from paying over $3,600 per month to a little over $1,100 per month!
|Up to 80% Loan to Value
|Low liquidity OK- We only need 3-6 months of P&I in reserves
|TAX RETURNS not required! – investor and owner-occupied Businesses
|Loan Amount: $150K-$2MM
|Recently Stabilized OK- we only need 75% occupancy for the preceding 90 days
|Loan Purpose: Purchase, Cash Out, Refinance
|No seasoning on title and the ability to use appraised value vs cost
|Loan Product: 5-Year and 30 Year FIXED PRODUCTS AVAILABLE!
|Out of state investors OK
|Min. Middle Credit Score: 650