- WHAT TYPES OF PROPERTY WILL WE LEND ON?
- WHAT TYPES OF BORROWERS WILL YOU LEND TO?
- HOW ABOUT LOAN SIZES?
- WILL YOU ALLOW CROSS- COLLATERAL TO MAKE A DEAL?
- ARE YOU A TRUE EQUITY LENDER?
- DO YOU ALLOW SELLER CARRYBACKS?
- DO YOU MAKE SECTION 32 AND CAL 32 LOANS?
- DO YOU DO SECOND MORTGAGES?
- IF A BORROWER HAS GOOD CREDIT, WHY COME TO DFI?
- WHY CHOOSE DFI OVER ANOTHER HARD MONEY LENDER?
- DO YOU CHARGE PREPAYMENT PENALTIES?
- DO YOU REQUIRE CUSTOMER CONTACT?
- DO YOU DO FORECLOSURE BAILOUTS?
- DOES DFI PAY BACKEND FEE?
- WHAT IS DFI’s UNDERWRITING PHILOSOPHY?
- DO YOU REQUIRE AN APPRAISAL?
- WHAT STATE DO YOU LEND IN?
- HOW ABOUT TITLE AND ESCROW, WHO ORDERS AND WHERE?
- HOW QUICKLY CAN YOU MAKE DECISIONS AND
CLOSE A DEAL?
- HOW TOUGH ARE YOU ON INCOME VERIFICATION?
- DO YOU PROVIDE 100% OF COST FINANCING?
-Construction Loans-
- WILL DFI FINANCE THE LOT?
- WHY DO YOU REQUIRE A FUND CONTROL?
- MUST THE BUILDER HAVE EXPERIENCE?
- WHY DO YOU REQUIRE AN LP10 ENDORSEMENT TO THE TITLE POLICY?
- DO YOU ALLOW FOR INTEREST RESERVES?
WHAT TYPES OF PROPERTY WILL WE LEND ON?
DFI lends on many types of real estate, however we are very conservative when considering special purpose properties and may require lower loan to value ratios and/ or cross collateral.
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WHAT TYPES OF BORROWERS WILL YOU LEND TO?
We will lend to any type of borrower including partnerships, corporations, limited liability companies, trusts, estates, non-residents, and
individuals.
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HOW ABOUT LOAN SIZES?
Typically between $250,000 and $2,500,000.
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WILL YOU ALLOW CROSS- COLLATERAL TO MAKE A DEAL?
We do that all the time; sometimes taking several properties to make the equity requirements work.
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ARE YOU A TRUE EQUITY LENDER?
Yes and no! Unlike some hard money lenders looking for opportunities to foreclose, we just want to be paid each month. So, equity is very important to us, but so is a borrower making us comfortable we will be paid.
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DO ALLOW SELLER CARRYBACKS?
Yes, however we also want our borrower to have something of their own at risk, either through a down payment or by cross-collateralizing one of their other properties. Much depends on the borrower profile.
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DO YOU MAKE SECTION 32 AND CAL 32 LOANS?
Yes. We also look for alternative ideas to avoid them. Brokers must be aware of the liability all parties, including themselves, carry when originating these loans and we are very cautious.
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DO YOU DO SECOND MORTGAGES?
Yes, but not many. Credit must be pretty good, and the ratio or size of the second must be large in relation to the first.
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IF A BORROWER HAS GOOD CREDIT, WHY COME TO DFI?
Great question! Good credit borrowers come to
DFI for speed in closing to take advantage of an opportunity. We have far less red tape than banks and much easier to get cooperation in structuring a deal with easy documentation.
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WHY CHOOSE DFI OVER ANOTHER HARD MONEY LENDER?
We really want to help brokers make deals! We think you will find over time that we do what we say and provide
fast service. DFI has several offices throughout the State; we try to be very professional and easy to work with.
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DO YOU CHARGE PREPAYMENT PENALTIES?
We offer loans with zero, 1 year and 2 years prepayment penalties.
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DO YOU REQUIRE CUSTOMER CONTACT?
We lend to people first, and we prefer to meet, or at least speak with folks before we lend them money. There are some situations where we think this is more important than others.
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DO YOU DO FORECLOSURE BAILOUTS?
Yes. However we look for situations where the borrower had a “one-time” event which created the situation and our loan, along with their current financial situation makes us comfortable that we will be paid. Income verification is very important as is condition and pride of ownership in the real estate collateral.
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DOES DFI PAY BACKEND FEE?
No, all costs and fees are on the front-end.
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WHAT IS DFI’s UNDERWRITING PHILOSOPHY?
We lend to people first, and we care about our relationship with them and that our loan is going to be mutually beneficial. The real estate asset is also very important, along with location and loan to value. But we look at
the collateral as the fall back position, and at the end of the day, we want to lend to good people.
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DO YOU REQUIRE AN APPRAISAL?
We always prefer one, however there are some occasions when a formal appraisal is not necessary. We will do everything possible to accommodate your needs, particularly when a fast closing is critical.
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WHAT STATE DO YOU LEND IN?
California primarily, however we will consider lending in Western States on non-owner or commercial situation, or where consumer licensing is not an issue.
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HOW ABOUT TITLE AND ESCROW, WHO ORDERS AND WHERE?
On some loans we can accept your title and
escrow. On others we require the use of one of our
preferred title vendors.
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HOW QUICKLY CAN YOU MAKE DECISIONS AND
CLOSE A DEAL?
You will be impressed! We lend our own money and have a very efficient staff. We will respond as quickly as you supply us with information, and probably get tired of our prodding to get a deal closed – we do not like to waste our time or yours and prefer real deals we can fund! We also prefer you let us know up front what else may be going on with this loan submission.
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HOW TOUGH ARE YOU ON INCOME VERIFICATION?
There are certain regulatory requirements which must be met. Also, we want enough information to make us comfortable DFI will be paid. There are many ways that we can approach this, including
bank statements instead of traditional paystubs and W-2's.
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DO YOU PROVIDE 100% OF COST FINANCING?
Not often unless there is other collateral. For instance, if
a borrower is looking to finance the entire purchase price of a property
they are “stealing”, we may be a little more flexible if their credit is great, but usually will apply our standard loan to value ratios against the purchase price. The most notable exception may be in a non-arm’s length deal i.e. parent to child, probate settlement, lease-option, and similar transactions.
Cross collateral can be a useful tool in accomplishing higher
LTV's.
CONSTRUCTION LOANS
WILL DFI FINANCE THE LOT?
Yes, a portion of the lot may be financed if it fits into the overall cost and loan to value relationship which we require. We always prefer that the builder come to us with a free and clear lot.
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WHY DO YOU REQUIRE A FUND CONTROL?
As with most independent lenders in California, the primary reason is to protect against mechanic’s liens and insure the job stay within budget and reach completion.
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MUST THE BUILDER HAVE EXPERIENCE?
We do allow for owner builder construction loans, and do rely on the integrity, history, and professionalism of both parties in making our decision.
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WHY DO YOU REQUIRE AN LP10 ENDORSEMENT TO THE TITLE POLICY?
This endorsement protects the lender and owner from the possibility of mechanic’s liens coming ahead of the Trust Deed. It is very important, particularly if work of any form has commenced prior to our loan being funded. It is best to inform the title company as early as possible of our requirement so it does not impede a timely funding.
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DO YOU ALLOW FOR INTEREST RESERVES?
Yes, if the loan to value allows.
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