• You are here:
  • Home »
  • Archive: June, 2020

Archive Monthly Archives: June 2020

Hybrid Loan Product: Combines Collateral with Cash Flow Underwriting (Low Doc Loan)

This program was created by a long-term, acquaintance from my hometown, Chicago.

Hybrid Loan Product: Combines Collateral with Cash Flow Underwriting (Low Doc Loan)

This loan product is UNIQUE and has some components that separate it from the competition. Using 2nd Liens and Land/Cars/Boats as collateral with high LTV’s.

  1. Requires that you have a cash flowing business entity depositing at least $6,000/month
  2. Must show a minimum of 3 months of deposits (3 months in business qualifies)
  3. Available in all 50 States
  4. Collateral required: 
    1. Commercial and Residential Real Estate (even primary residence)
    2. LAND is acceptable
    3. Assets such as Equipment, Cars, RV’s, Boats are acceptable
  5. Loan to Value ranges from 40% to 90% depending on the collateral (Real Estate the highest LTV)
  6. 2nd liens on Real Estate are acceptable, but 1st liens preferred
  7. Interest rates in the 20%+ range due to low documentation/credit scores, high LTV’s, 2nd liens, land, etc.
  8. Loan Terms:  Longer than typical Merchant loans (typically years not months)
  9. No Prepayment Penalties...use this loan to "bridge" the sale of real estate, a boat, car or equipment
  10. Payments:  Monthly, bi-weekly or weekly as opposed to daily
  11. Common Sense Underwriting
    1. Offering loan amounts & payments/debt service the company can manage
    2. Focus is on the character of borrower, not the credit score
    3. Defining "Character"…is the borrower fully disclosing debt, liens, IRS or mortgage issues?  Transparency and honesty will make or break the loan.
    4. Low 500 credit scores acceptable because Character is more important than a credit score
  12. NO Front Fees…the lender even covers valuation expenses (appraisals/BPO's) which are reimbursed at closing

Final Note:  If you or your client qualify for better rates, I will move you to a lender in my portfolio that will achieve that goal.  But if credit, no income documentation, short time in business or unusual collateral means this is the lender that will deliver capital for you, it provides you with options.

Email or call with deals or questions.


In your service,

Joseph P. Tufo


San Francisco Bay Area

925.352.6000 Direct, WhatsApp, Telegram, IMO, Viber, Signal

Skype: jptufo



Available 8 am to 6 pm Pacific M-F.



Disclaimer: The information contained on these pages is for educational use only, for the intended recipient. The sender is not a securities dealer, financial advisor, broker, or titled entity. If you require financial advice, consult a licensed professional. 

Skip to content