The newest loan program from Citadel Servicing Corp.
(CSC) is one such product. CSC’s new Non-Owner Business Purpose product is a great way for originators to help borrowers looking to fund non-owner-occupied properties.
“What’s unique about this product is that it does not require TRID documentation, and you can close it in as little as 10 days,” said Will Fisher, CSC senior vice president of national sales and marketing. “That’s pretty quick. If you have your appraisal and title, and your application’s filled out correctly, it should move on through.”
The program is good for single-unit properties or multi-unit properties up to four units.
“It can be a fix-and-flip or it can be a fix-and-keep. Anything that you’re going to be renting out and making income on would qualify,” Fisher said. “It must to be non-owner-occupied. But the beauty is there’s no hold-up with TRID.”
The product avoids the need for TRID documentation because it’s in a loan class that’s considered commercial and falls outside Dodd-Frank requirements, Fisher said. While there are already non-owner business products on the market, what’s unique about CSC’s program is its accessibility.
“It has been out there, but more in the commercial sector,” Fisher said. “We’re opening it up more for mortgage brokers who really don’t participate in private money or commercial lending programs. This gives them another tool in their toolbox with a process that they’re familiar with, and a much more competitive rate than you get with private or hard money
Borrowers can also take advantage of the program with a stated income amount.
Borrowers who participate in this class of lending are usually savvy, our experience has shown these borrowers know what they can afford and at this low loan to value the data shows payment performance to be very high,” Fisher said. “We’re comfortable with that risk level.”
Features of the Non-Owner Business Purpose program include:
Details and requirements
- No TRID disclosure requirements
- No income documentation requirements
- No reserve, asset or DSCR requirements
- Available to wage-earners or the self-employed
- Vacant properties are eligible
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- Must be a non-owner-occupied property, one to four units
- Business purpose is to acquire, improve or maintain the property
- $2 million maximum loan amount
- $100,000 minimum loan amount
- 70% maximum LTV
One of the biggest advantages of non-prime programs are their flexibility. Brokers can use non-prime products to help borrowers who have unusual projects that might otherwise be difficult to fund.