Introducing 100% Financing using Cross-Collateral Program
By offering a cross-collateralization financing you can achieve higher LTVs by allowing you to leverage their equity in departing residences, investment properties or second homes as down payment.
Collateralization occurs when a borrower pledges an asset as recourse to the lender in the event that the borrower defaults on the initial loan
Using an asset that is currently being used as collateral for a loan is also used as collateral for a second loan. If the debtor was unable make either loan’s scheduled repayments in time, the affected lender(s) can eventually force the liquidation of the asset and use the proceeds for repayment.
When investors and business owners have a property with equity you can use that to secure another loan. This process is known as cross-collateralization. Cross collateralizing is advantageous because you don’t have to encumber multiple pieces of collateral. Use cross collateralizing to get the money you need for your next project fast
Technically, taking out a second mortgage on a property is considered to be a cross-collateralized loan. In such a case, the property is originally used as collateral for the mortgage. The second mortgage is then tapping into the equity that the property’s owner has accrued for collateral.
If you are trying to refinance a commercial property, there may not be enough equity in the property to fill your need. Cross collateralizing allows you to generate funds for investing or projects that would not be possible with a regular banking organization. With cross collateralization, the lender is able to add extra collateral to the loan, making it more desirable. If your credit rating is not as strong as a regular bank would require, the lender may require a second property as collateral due to the risk that the borrower’s credit rating poses.
To get you better terms we offer an ‘experience tier’ – the more experience you have the better the better better loan terms you get. Then, based on our creative financing background, we developed a way to get you fast-tracked onto a higher experience level using the experience of someone who could act like a co-signer for the loan.
CROSS COLLATERAL HIGHLIGHTS
– Primary residences, second homes, investment property types
– Purchase and Refinance transactions
– Available only for Wholesale Portfolio Products
– 100% Financing when the following Purchase transactions conditions are met:
- Combined LTV is at least 5% below the published guidelines
- 12 months reserves
Consider using the Cross Collateralization technique, our experience tier and experience fast tracker for better funding options + terms. Complete our funding application as thoroughly as possible. It’s completely confidential, costs nothing and you’re under no obligation.
Whether we process your loan in-house or with our partner lender you are backed by our We Lend Money Guarantee™ so you have peace of mind of a timely, professional closing and our years of experience in real estate and business.