DFI offers a wide range of collateral based loans to any type of
borrower on any type of real estate.
LOAN TERMS IN GENERAL
Loan Sizes: $250,000
Loan Terms: Up to 30 years, with
interest only payments paid monthly.
Generally, we are looking for DTI’s of 50% and under; will
consider higher on an exception basis. Income documentation can
be less cumbersome with DFI, as we will consider alternative
methods of verification. Interest holdbacks can be built
into the loan.
and marketability of the real estate is very important to DFI.
We look for loans in urban or suburban type settings, and will
be less aggressive in rural or small town areas.
- Loan to Values up to 75% SFR
- 70% for condos
- Properties must show pride of ownership, or
have a plan for improvement. We will also consider
unfinished and properties in need of improvement, with
holdbacks required for work completion and we will
consider future value.
- DFI does not underwrite Section 32 loans.
Loan to Values are up to 70%
In most cases, DFI will not require an MAI
appraisal, however will require
A summary from a competent appraiser of recent sales and
A Phase I environmental study may be required
depending upon the loan size and type of real estate.
For further information contact Bill Blair at
Steve@dfifunding.com or by phone at (510) 420-8698
Loan to Values:
- Improved building sites to 65%
- Other land to 50%
Although DFI does not focus on FICO scores,
borrower credit and payment ability is important on land
loans, as is the exit strategy.
DFI will make loans on raw land at modest loan
to value ratios, as well as land under development with
holdbacks for consulting, engineering, government, and
other fees and costs intended to increase value. DFI
will base the loan amount and holdbacks on estimated
future value. If land is not entitled, DFI will
require cross collateral.
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
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
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 3/8th 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
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.
AND CAL 32
(A B 489)
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
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
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.