Frequently Asked Questions

Q. Who is the best candidate for Boston Bancgroup's Small Commercial Lending Program?

A. Borrowers who are looking for financing on an income producing or commercial property, but who can't qualify for traditional bank financing because they prefer not to show verifiable income or assets. Such as:

• Applicants without sufficient credit history.
• Business owners who desire to take cash out of their property.
• Entrepreneurs and self-employed people wanting to purchase a location for their business.
• Borrowers who want to limit their investment to as little as a 10% down payment. (Boston Bancgroup allows CLTV's up to 90%)
  

Q. What type of income verification do you require?

A. One of the things that separates Boston Bancgroup from the more conforming commercial lenders is that we do not verify the borrowers personal income. We require a completed application (Fannie Mae 1003) with the borrower income and assets stated for pre-approval. The only income verification we require is on the subject property. We require rent rolls, leases and estoppel certificates on properties with more than four units certified by the borrower. Estoppel certificates are only required if there is one unit in a building which is responsible for more than 40% of the total income. Stated income and stated assets allows self employed borrowers who cannot verify all of there income to qualify for financing.

Q. Can you finance properties that have a high environmental risk such as gas stations, auto repair or dry cleaners.

A. When these loans are pre-approved Boston Bancgroup requires the borrower and/or seller to complete an environmental questionnaire, which is submitted to an environmental insurance company. They review the information provided and issue a policy based on the environmental risk of the property. The premiums usually range anywhere from $500 to $2600, saving borrowers significant money over the cost of a typical Phase I environmental report. The use of environmental insurance allows Boston Bancgroup to finance the "high risk" properties which more conforming lenders will not.

Q. What is the borrowers profile?

A. One common denominator among all borrowers is that they have a tremendous amount of real estate equity and an immediate need for short-term capital. They cannot or will not go through the strenuous and time-consuming underwriting process required by conventional credit lenders.