What are CCG Capital's Underwriting criteria?
Although the primary consideration is the asset that is being placed as collateral we do consider other criteria when underwriting a loan.
All of the loans that we fund are interest only loans. However, the borrower will have to prove their ability to service the debt. Depending on the equity in the deal, an interest reserve might be possible.
A credit report is NOT required. Although a credit score is not a deciding factor in underwriting, other items on a credit report might be. In underwriting we look for tax liens and judgments as they may impact the title of the property.
The borrower is required to provide personal financial statements and tax returns.
The borrower is required to provide a well-written Executive Summary that clearly outlines their objective.
The borrower is required to present a well-defined and identifiable exit strategy for the loan.
The borrower is required to provide a recent appraisal or credible broker price opinion letter supporting the value of the asset.
When issuing a Letter of Interest, CCG Capital will include a non-refundable underwriting fee based upon the amount of work that is required to successfully close the loan. The underwriting fee is used to cover underwriting costs, funds reservation and processing costs. This fee does not cover appraisals, surveys, environmental studies, or any other third party fees that might be required in order to underwrite the loan.