Banks and financial-technology firms are starting to toughen their approval standards for new loans to consumers and small businesses amid the coronavirus pandemic. Many private lenders and hard money investors are also making critical guideline changes or temporarily pausing all new lending activity. That means that many investors could find it hard to get funded just when they most need it, as the novel COVID-19 puts thousands out of work. The latest Mortgage Credit Availability Index shows lenders are tightening their standards Overall mortgage availability is now 16% lower than it was in February and at its lowest point since June 2015.
What does this mean for you and us?
(LTV) Loan to value ratios are being lowered: This will require you to put a larger down payment on properties and be able to handle more of the carrying cost.
Increased documentation request: Although we are able to offer several "No DOC" or "Lite DOC" funding options, many of them have been put on hold. You will have to provide documentation showing that you can financially handle the property and cost of renovations.
Rental Unit lending: Many Funding Partners have paused rental property funding due to concerns that tenants may lose their job or otherwise not be able to afford the rent payments. Since Governments are also postponing many types of proceedings, this could lengthen the time that the rent is not being paid.
What have we done to improve our service?
ROC Financial Solutions has had to restructure our business model to better serve our clients. All of our staff is working remotely which may result in a delayed response. Here are the most recent updates:
Over the past two weeks we have been engaging with our private and hard money funding partners to ensure that we have the best possible up-to-date programs and options for you. We have spent hours going over all of the changes in lending guidelines with each partner and updating our database. (Keep in mind that these too may change). We have also contracted with a few new partners that will help fill some gaps that others may leave behind. We are in an environment that can change day by day right now.
All loans will require a 24-48 hour initial submission review.
All request require a completed quote submission form.
Every project will be individually considered.
$100,000.00 minimum loan amount. ($50,000,000.00 Max)
Proof of Funds will require a 24 hour review.
Proof of Funds will be valid for 30 days. (Subject to guideline changes)
Please be patient with your funding consultant because they are doing everything possible to offer you the best funding options. If you have any specific questions, please contact us at firstname.lastname@example.org. We do request that you use the quote request form for all project funding inquiries.
Most importantly, we wish you and your loved ones a safe, healthy, and quick recovery from this crisis.
ROC Financial Solutions