“I had a woman who inherited property in a very trendy up and coming Washington, DC, neighborhood and she needed a renovation loan. She talked to banks for two years and nobody would give her a loan. When she came to us, her property was worth about $300,000, after getting a loan and doing the renovations, it is worth more like $900,000. I introduced her to a bank which now has her loan. We help people create wealth and I am very proud of that. We helped her create an income stream.
“Nonprime lending is just common sense. Lenders try to put people in a matrix. If this is your credit score and this is your income and this is your LTV and this is how much you want to borrow, then this is your loan, this is where you fit in the grid. That leaves a lot of good people on the sidelines,” he said.
“I’m not trying to reinvent the wheel. Lending used to be more subjective. Loan officers would talk to people to figure out what they needed and to assess risk, and that is what we do today.”
Operating in the subprime space and making renovation loans, he said, does not mean making riskier loans.
Coming April 20, Robert Senko discusses why people with good credit and high net worth will often choose a nonprime loan.
At ACC Mortgage, a large part of their subprime lending involves renovation loans, and owner Robert Senko is proud of how his company is able to help people create wealth by lending them the money they need for renovations when banks and traditional lenders won’t.