DFI focuses primarily on the equity which the borrower brings into the project – requiring a minimum of 25% (i.e. land and building cost $1mil – borrower must contribute $250,000).  That equity can come from existing equity in the land (i.e. free and clear), cash infusion, partial seller carry-back/ subordination, and/or cross-collateralizing with another real estate asset.

 Preferred loan sizes are between $500,000 and $1,500,000, but larger amounts are considered, especially if the request involves more than one building. For larger projects, cross-collateral may become a requirement.

 DFI will make “ground-up” and “currently under construction” loans to builders and owners.  A licensed General Contractor will always be required who has proper bonding, insurance coverage, and experience.  With construction loans, the borrower credit profile should be good.  Although we may not require income documentation, ability to pay must be evident.  Interest hold backs are available.

 In most cases an independent plan/ budget check will be required to verify costs are in line with current market conditions (cost will vary depending upon size and complexity of project).  An appraisal is also required and should reflect current and finished value.

 An independent Fund Control is required during the construction process to disburse draws and obtain mechanic lien waivers.  Costs will vary, but usually range between 3/8^th of 1% and up to 1% of funds under control.

 Typical pricing will be at an interest rate of 11 ½% plus 3 ½ points to DFI (plus $1495 admin fee).  Loans are written for one year, with no pre-payment penalty. They may be written for a longer term if required, at a higher fee (i.e.18 months = 4 points).  Interest is charged on funds after they are advanced.  Brokers may charge up to 2 additional points.

 If these parameters fit your borrower profile, please email Steve Anderson at steve@dfifunding.com or call (510) 420-8698
 

DFI has the capacity to fund Lines of Credit for any type borrower on residential and commercial property for any business, or investment purpose.

Loan to value ratios, lender fees and interest rates will be similar to other closed loans products.

Generally, DFI will fund a line of credit, requiring all agreed fees and costs be funded at closing, then monthly interest payments will be made upon the outstanding balance for a term of one year. Borrowers may make one withdrawal per month with two weeks written notice, and may reduce principal at any time. A handling charge of $150 is required for each transaction. Other closed end loan terms apply.

DFI does not use FICO scores in its underwriting process. Rather than looking at consumer credit history, we pay close attention to how the borrower has paid their mortgage, along with ability to keep payments current. If the borrower is behind or has a notice of default, we will want to investigate the reason creating the problem and be confident our loan, along with their current circumstances were temporary in nature i.e. illness, loss of job, and the loan will solve the problem and get them back on track.

DFI generally does not consider loans to borrowers with multiple bankruptcies, multiple foreclosures, and/or long term negative credit issues.

DFI does not fund loans which fail the tests under these state and federal regulations.

DFI does not employ any strict ownership or seasoning term, but rather focuses on the current market value of the property and level of equity and risk provided by the borrower. Typically, we will consider non-arms length transaction i.e. family transfers, lease options, sweat equity and other improvements made to a recently acquired property. Generally, we will not consider funding against presumed higher value of a property (at a lower price) to be acquired, unless other collateral is provided.

DFI will consider funding borrowers who are currently behind or have recent notices of default on their property, however we will only consider situations where the borrower has a “one-time” event caused by some misfortune i.e. illness, loss of job, etc., but otherwise their historical credit history has been good. We are not interested in perpetual credit abusers, regardless of the equity. Loan to value ratios are potentially the same as described on other loan parameters.

We will require information about the circumstances creating the current problem and a comfort level that the loan will help solve the problem and the borrower can prove their ability to keep DFI current on future mortgage payments.

DFI makes loans for any reason including investment and business purposes, however all loans must be secured by real estate. We do not make loans against other business assets or personal property, however may require taking assignments of personal property if it is integral to the real estate.

DFI makes debt consolidation and other consumer purpose loans against all residential and other types of real estate. We will consider stated income programs where there is a good record of making mortgage payments, and it does not otherwise conflict with regulatory issues.