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Ideal Solutions For Unique Lending Scenarios
One of the best aspects our one–of–a–kind lending program is the ability to address special situations that traditional commercial lenders can't or won't. This has left a large number of underserved borrowers – possibly you – in the marketplace.
Until now.
Owner–occupied properties
More often than not, banks prefer low–risk properties with strong Debt Service Coverage Ratios (DSCR — the traditional commercial underwriting method). Owner–occupied properties may have difficulty passing strict DSCR requirements, but you can still obtain financing through Katz Mortgage Team's unique approach that allows for residential–style debt–to–income (DT) underwriting.
Self–employed borrowers
Because many self–employed borrowers may under–report taxable income, it can be difficult to obtain approvals. Unlike other lenders, Katz Mortgage Team examines tax returns to determine realistic net income with an understanding of typical tax strategies these borrowers use. Given this common–sense approach, self–employed borrowers an qualify for higher LTV's with us than with many alternative sources of financing.
Property doesn't cash flow
Traditional lenders only approve properties that cover all costs at a DSCR of 1.2. Our DTI analysis allows us to focus on the borrower's personal ability to carry the debt on the loan. This makes financing much easier on properties that may not be able to gernerate income right away (vacant, renovation, etc.). With DTI underwriting, a strong borrower can qualify for the loan when they might have been overlooked through the DSCR method.
Special pricing for properties that cash flow/debt service
Where most lenders require a minimum DSCR of 1.2 or higher, Katz Mortgage Team requires only a 1.0 DSCR. If a property meets criteria, we will reduce our rate and margin by a full 1% (borrower must have "A" credit score to qualify, LTVs up to 75%).
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