What is the typical borrower's profile?
One common denominator among all borrowers is that they have sufficient real estate equity and an immediate need for capital. They cannot or will not go through the strenuous and time-consuming underwriting process required by conventional credit lenders.
Who is the best candidate for Interior Equities Corp. Funding program?
Borrowers who are looking for financing on an income producing or commercial property who may have difficulty in providing financial statements, or who, for a variety of reasons don’t fit neatly into the traditional lending models, such as:
- Borrowers with limited credit history.
- Business owners who desire to take cash out of their property.
- Entrepreneurs and self-employed people wanting to purchase a location for their business.
- Borrowers who want to limit their investment to as little as 20% down payment.
- Interior Equities Corp. allows Vendor Take Back (VTB) mortgages to 90% CLTV.
Because we focus on the value of the real estate and realize that good applicants aren’t always able to produce the documentation traditional lenders demand, we make your job easier.
What type of income verification do you require?
One of the things that separates Interior Equities Corp. from the more conventional lenders is that it is not mandatory to verify the borrower’s personal income. We require a completed application with the borrower’s income and assets stated for approval. In many cases, the only income verification we require is on the subject property. We require rent rolls and leases on properties with more than four units certified by the borrower. Estoppel certificates and tenant acknowledgements are normally only required if there is one unit in a building which is responsible for more than 40% of the total income.
Stated income / stated asset underwriting allows us to consider self-employed borrowers and eliminate some of the frustrating red tape you would encounter with most other lenders.
I am in a foreclosure situation, are you able to finance my mortgage?
If the client has a steady job/enough equity and fairly decent credit other than the foreclosure, we can help the client re-establish their credit by providing funds to prevent them from losing their property.
I would like to purchase a Mobile Home, do you finance them?
We will finance a manufactured or modular home on a deeded lot. Older mobile homes are usually unacceptable as security.
I went bankrupt, can you help me buy a house?
We are able to assist in this case after a full discharge has been achieved, so long as the client has a down payment for the house they want to purchase. Some or all of the down payment may come from a gift.
I am a proprietor and all my sales are in cash, can you help me finance my business?
If the business is sustainable, with a good business plan in place, we are able to assist. The client’s good credit would have to be reflected personally as well as in support of the business.
I am divorced and need to buy out my ex-spouse’s portion of the house or business; can you help me do that?
Providing there is enough equity in the home/business or by combining both, we can accommodate someone in this situation.
I have a small business and need money to expand and finance my receivables, would you be able to lend money to me?
With the equity in your home, we are able to help you out in this case.
I am a non-Canadian resident and require financing, can you help?
With appropriate information and acceptable credit we can help. We will usually lend up to 70% of value in these cases.
The actual number of years it will take to pay back your mortgage loan.
A nominal fee required to process a loan application and may or may not be refundable.
All loans are not assumable.
A mortgage that locks you into a specific payment schedule. A penalty usually applies if you repay the loan in full before the end of a closed term. This is normally 3-month’s interest.
A nominal fee required to bind the loan offer. This fee is credited towards Brokerage, Legal and Inspection Fees.
A common payment among owners which is allocated to pay expenses.
A mortgage loan issued for up to 80% of the property’s appraised value or purchase price, whichever is less.
The buyer’s cash payment toward the property, the difference between the purchase price and the amount of the mortgage loan.
The difference between the home’s selling value or appraised value and the debts against it.
General Security Agreement charges all assets of the borrower.
A mortgage that exceeds 80% of the home’s appraised value. In these specialized cases, we may charge an extra fee to provide our own insurance coverage.
The value charged by the lender for the use of the lender’s money, expressed as a percentage.
Land Transfer Tax, Deed Tax or Property Purchase Tax
A fee paid to the municipal and /or provincial government for the transferring of property from seller to buyer.
A fee required in some instances when a commercial or industrial mortgage loan is involved.
The end of the term, at which time you can pay off the mortgage or renew it.
The person or the financial institution that lends the money.
Normally require All-Risks coverage to be provided for all mortgages.
Allows partial or full payment of the principal at any time, without penalty.
Personal Property Security Agreement charges Personal assets of the borrower.
Voluntary payments in addition to regular mortgage payments.
The amount borrowed or still owing on a mortgage loan. Interest is paid on the principal amount.
Paying off the existing mortgage and arranging a new one or re-negotiating the terms and conditions of an existing mortgage.
Re-negotiation of a mortgage loan at the end of a term for a new term.
Additional financing, usually has a shorter term and higher interest rate than the first mortgage.
Nominal fee charged by the Lender when full use of an approved loan amount is required but not yet drawn (eg. Construction draw mortgage).
The length of time the interest rate is fixed. It also indicates when the principal balance becomes due and payable to the lender.
Legal ownership in a property.
A letter required by the Lender from the appraiser, when an appraisal was done for another Lender or the Borrower, which allows us to rely on the information in the appraisal for lending purposes.
A mortgage with fixed payments, but fluctuates with interest rates. The changing interest rate determines how much of the payment goes towards the principal.
Vendor Take-Back Mortgage
When the seller provides some or all of the mortgage financing in order to sell their property.