StoneTree Financial provides an alternative lending source to Borrowers as compared to the traditional lenders such as Banks, Credit Unions & Life Insurance companies.
The “Traditional Lenders”, when looking at a real estate loan request, predominantly focus their underwriting on the credit worthiness of the borrower – credit, income, tax returns and liquidity.
If the borrower passes the underwriting on the credit side of the transaction, only then will the Traditional Lender look at underwriting the real estate side of the loan package. They will generally lend on most property types and will provide 1st and 2nd loans up to 80% of the value of the property. Interest rates from Traditional Lenders tend to range from 4.50% to 5.50% amortized over 25 to 30 years. The approval timeline with most Traditional Lenders is somewhere between 60 to 120 days with an average approval time of 90 days.
StoneTree Financial specializes in lending on income producing commercial real estate properties in CA, OR, WA and NV. Our approach to lending is to first conservatively underwrite the real estate using strict underwriting guidelines. The Borrower credit side of the transaction is considered secondarily. Once StoneTree has successfully underwritten the real estate we will consider making loans up to a maximum of 65% of the value of the property.
Our interest rates offered range from 8.75% to 12%, only for loan terms of 1 to 5 years.
The majority of loans funded by StoneTree are secured by 1st Deeds of Trust. Generally, loan requests can be approved funded in less than 30 days. Limiting the Loan-To-Value to 65% or less on improved properties provides the investor with a larger cushion of protective equity.