Pivot. Pivot. Pivot!
Numbers
Loan Type: Purchase
Program: P&L Loan (Profit and Loss)
Loan Amount: $1,600,000
Sales Price: $2,000,000
Rate: 6.875%
Down Payment: 20%
Estimated Loan Payment: $10,516.86
Background
William and Julie own a consulting business. They initially purchased a home in Texas to expand their business in which Vantage was the lender for this purchase. After a year, they purchased another home in Texas to expand their portfolio. But after two years of being in Texas, they couldn’t take the weather and now that their business was thriving, they could now afford to purchase their dream home in California.
Client Requirements
The loan program required a profit and loss statement signed by their CPA along with CPA letters proving ownership of their business for two years.
Loan Challenges
The home they wanted to buy was initially overpriced at $2.2 million and the sellers had at first rejected their lower offer. After a few months the home had yet to sell, but Vantage had kept in contact with the seller’s agent. This loan had many challenges. Initially, this began as a bank statement loan but due to the amount of deposits, the bank wanted to source each one which in turn would be challenging in itself. Additionally, the clients had just shut down one of their businesses and started another so Vantage had to switch the loan program to a general profit and loss for their consulting business. One top of that, the seller would only accept the offer if Vantage agreed to complete the loan in 18 days rather than the standard 30 days.
The Results
This started as a bank statement loan, but we pivoted due to the complication of tracking the many numerous types of deposits that is common to the consulting business. This then became a profit and loss loan program and Vantage leveraged our relationship with the bank to put an entire team on the file and expedite the closing within 18 days. Not only was the loan approved in that short amount of time, but we were able to get the bank to price match a competing lender to provide our client with the best rate possible.
The Vantage Advantage
With our team, we were able to navigate the changes quickly in order to get the deal done and done with finesse.
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