In my opinion, use this professional when it comes to owner occupied residence. There is no difference between traditional mortgage underwriting, and this type of professional. When it comes to vacant land, raw land, and undeveloped land in my opinion, I see no use for such a professional (RMLO)…
@penlipcuz1 thanks for your input! Are you doing any kind of underwriting for your land borrowers? If not, what’s your current default rate on your seller-financed land deals?
I lend based on equity but I do look at income, debt load and credit. Usually do not really care if the buyer ‘qualifies’ by underwriting standards.
I do not and have never income qualified for conventional underwriting but somehow I seem to have accumulated $3.5M of bank mortgage debt and have never missed a payment over the past 40 years. One late payment when a delayed escrow payoff missed by one day.
If there is enough cash down (equity), I really do not care if the buyer defaults and I take the property back at a discount and have to squeeze the same lemon again.
@sean-markey good point. One of the most important “Cs” of the 5 Cs of Credit is a person’s Character.
Some people will never miss a payment. Even if nothing else checks out or appears that they’re creditworthy, if they have good character (which you can usually get a feel for by looking at their payment history and figuring out if they’re the kind of person who honors commitments), it can go a long way.
I knew some bankers who worked with the Amish, and they’re apparently notorious for this. They don’t have any credit histories to pull because they’re not part of the credit system. However, they’re still the most reliable borrowers EVER because their communities will support each other and make sure promises are kept.
@retipsterseth Got to love the Amish. That lifestyle is a mega-commitment that takes mega-character. I do not make the cut!
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