Underwriting Guidelines

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					LOS OLIVOS C M L

Underwriting Guidelines                                             Processing & Needs List
Cash Down Payment (minimum):                                        Processing:
Commercial Credit Tenant..................... 15%                   You are required to submit all applicable
Commercial non-credit……………50% - 20%                                 documentation listed below. It is the minimum
                                                                    documentation required for a response with a
Source of Down:                                                     potential approval and/or letter of interest.
Family gift: Requires Gift letter & Bank Stmt.
Loan on Real estate owned: Need Closing Stmt.                       You are not required to process the loan package or
Bank account: Verify Funds                                          request an appraisal. Because timing is an issue,
1031 Exchange: Exchange Documents                                   please gather the following documentation as quickly
                                                                    as possible and submit it to your account executive
Seller Secondary Financing:                                         listed below. For stated income please call, for full doc
Seller can finance over and above the                               please provide the needs list below.
minimum down payment, minimum term of 2
years.                                                              Needs List:
                                                                    Preliminary Submission Form (form online)
Loan to Value:                                                      Photos of front, rear and street
Credit Tenant: 85%                                                  Rent Roll (form online) and leases if available
Non-credit: 75%                                                     Current income expense subject (form online)
Note: Higher risk property and borrower will                        2 year income & expense on subject (form online)
decrease the LTV as a mitigating factor to risk.                    Completed 1003 credit applications (form online)
                                                                    Credit report (if available)
Stated or Limited Documentation:
                                                                    Explanation of derogatory credit or liens
Yes, for borrowers A-B Credit. The loan limits are                  2 years federal tax returns & extensions
greater than $100,000 and equal to or less than                     Corporate & Partnership tax returns (if applicable)
$2,000,000. Submit a complete application with                      Corporate recent P&L financial statement (if app.)
property info.
Personal Debt to Income Ratios:                                     Refinance Only Items, Add to Need List:
Mitigating factor for negative DCR the backend                      Closing statement if subject owned less than 3 yrs
ratio is allowable to 60%.                                          Purpose letter, if cash out, breakdown use of funds
Liquid Assets (cash)
                                                                    Preliminary title policy (if available)
Three or more months of payments, prefer six or                     Escrow (if available)
more months.
Cash Out Refinance:                                                 Purchase Only Items, Add to Need List:
Loans with less than 1.5 year seasoning: Max                        Preliminary title policy (if available)
loan is actual purchase price plus capital                          Escrow (if available)
improvements times max LTV. Loans with more                         Purchase agreement
than 2 years seasoning allows for maximum cash                      1031 Exchange agreement (if applicable)
out. Please call to review with loan officer.
Loan Fees (based on loan):                                          www.losolivoscml.com
Fees vary based upon program, the following is a                    Jay Cerny 805-325-6706
sample of typical fees:
$100,000 to 1,000,000……$1,4195 -2,485.00                            NOTE:
Over $1,000,000 .......................... ..$3,485.00              This flyer is for the real estate industry professionals
                                                                    only and is subject to change without notice.
Third Party Reports:
Appraisal..................................................call
Environmental .........................................call
Legal........................................................call




                                                                          Jay Cerny
                                                                          P.O. Box 104, Los Olivos, CA 93441-0104
                                                                          Phone: (805) 325-6706 Fax: (805) 456-0237
                                                                          mailto:jcerny@losolivoscml.com

				
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