Loan Category Definitions©
Real Estate Mortgage Loans
Fannie Mae/Freddie Mac (Residential 1-4 Family Investment Property Mortgage)
This is a category for the A/A+ (Fannie Mae/Freddie Mac - conforming) borrower credit must be very good. The borrowers may now borrow up to 80% of appraised value or purchase price, which ever is lower. Total debt (all required monthly payments including proposed house payment) should not exceed 45% with good to excellent credit or a minimum credit score of 640 or greater. However recently there has been no flexibility on this. Fannie Mae interest rates are the very best rates available to the borrower. Loan approvals may be obtained from us in several hours using "Automated Underwriting" (Fannie Mae Desktop Underwriting-DU, Freddie Mac Loan Prospector-LP) on non-complex applications.
Commercial Loans
We are a lender on commercial real estate. As a nation wide lender, we will consider loans in multi family, office, shopping centers, warehouses, manufacturing, multi use and many other income real estate properties. There are too many requirement to list here for loan qualifications. Loan qualifications may very per property. However we have a online commercial loan application that helps us with knowing how to understand what your needs and requirement are going to be. Please fill it out completely as possible as it does save time. Our loans can be fixed or variable and terms with amortizations out to 40 years, with loan amounts from $100,000. to $100,000,000. If you need any help please call us.
COMMERCIAL LOAN TERMS AND DEFINITIONS
Construction Loan: This is a loan that is designed to be short term for the purpose of construction a project. It is not designed to be a permanent or a long term financing. A construction loan usually requires a permanent loan/mortgage takeout to be in place before any construction work is started
Letter Of Credit: This is a letter that is provided by a Lender/Institution that is bankable...meaning that it is use to raise funds, considered to be a guarantee. This letter is a form of guarantees by a institution, i.e. another bank, savings & loans, governments, Wall Street, etc.
Stand By/Interim: A short term guarantee, usually for new developments/construction project. A very specialized financing use. Call us for your questions.
Purchase Loan: A loan that is typically designed for a purchase of property for new development (sometimes for land only) or existing real estate Project.
Refinance: A existing Project that needs a new loan/mortgage either for better rates and terms or to pull equity out in the form of cash.
Hard Money Loans/Mortgages: Loans/Mortgage that are based only on a maximum Loan to Value (LTV) of 50% - 60% of appraisal. No other consideration are given to qualify for the loan. This is strictly equity driven, allowing protection to the lender in the event of foreclosure.
Mezzanine Loans:
Bridge Loans:
NOTE: To all that read this....all that is defined here is of traditional market conditions. However is these current times nothing is traditional anymore. Financial markets needs to settle down and that may take years! We at Cornerstone Mortgage will always do our best to provide good service and a realistic opportunity for financing based on your status.
Farm and Ranch Loans
We are lender on farms and ranch loans nation wide. Please fill out the online mortgage loan application if you live on the farm or ranch in a single family house, otherwise please fill out the online commercial loan application. The acreage is not limited nor is the basis of income (working or non working farm and ranch). Please call us if you have any questions.
The above lending information is not intended to be comprehensive or
complete as to all the possible lending guidelines that may be required. Loan
programs, guidelines or qualifications are subject to change at anytime. If you
have any questions as to the very latest information please do not hesitate to
call us on our toll fee number as show on the
Cornerstone Mortgage Home Page.
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