Loan Underwriting

CREDIT * CAPCITY * COLLATERAL

Before committing, let’s make sure it has great ROI!

Servicing New Multi-Family Investors. Being an investor is exciting and very profitable, but it is a lot of work! To keep from making tons of mistakes it might require a few professional hands to help you flourish!

Residential (2-4) Units & Commercial Multi-Family Preliminary Underwriting Service

IRS 8825/1065 or 1120s (preferably)-Certified Financials
IRS 1040 (Schedule E) – 2-4 Units
Lease agreements
Property Package/OM (Offering Memorandum)
Rent Roll
T-12 (Profit & Loss Statement)

Underwriting conventional (2-4) Units using comprehensive risk assessment approach

Preliminary evaluation level of risk with:
• LTV/CLTV
• Credit Score
• Occupancy
• Loan Purpose
• Product Type (?) Depending on who you use (FNMA/FHLMC)
• DTI and Reserves
• Property Type Calculation-Rent Income/Loss
• Determine which expenses FNMA and FHLMC will allow from 1040 and use to produce your qualifying monthly rental income/loss ahead time.
• Assist you with gathering the MAIN documents lenders/loan processors will need to process your loan! No going back and forth trying to locate documents, in most cases, one and done! This includes purchase contract, and any addendums or counteroffers. (There will be certain borrowers/investors using creative methods, which will require more documents depending on your circumstances and lender’s programs).
• Quick review on Fannie Mae/Freddie Mac automated underwriting System (DU/LPA) guidelines on, how many properties you can finance, reserves, etc.
• FNMA/FHLMC reserves requirements & calculating the amount you must show before closing and the acceptable sources of those reserves (NOT ALL SOURCES ARE ACCEPTED BY FNMA/FHLMC).
• Discuss credit score Requirements for most programs unless you are using a private/hard money lender.
• Review current credit report (tri-merge) if you have one to make sure there will be no surprises when running through automated underwriting system.
• Preliminary NOI, COC, Debt Coverage Ratio, Cap Rate
• Preliminary Closing Cost
• Preliminary Acquisition Cost