At United Guaranteed Mortgage Company we are experts at residential private money lending. At UGMC we would like to you to have a pleasant experience dealing with our process of bringing liquidity to your borrower.
We understand it is our job to earn your business on every loan you bring us. At UGMC we all strive to bring transparency to the murky world of private money or hard money lending. As you will soon see UGMC has detailed their lending policies to further ease the choice of whom to go with when your client gets turned down by the banks.
If you have questions about our loan products or just want to make sure your loan scenario fits our lending parameters, don’t feel shy call toll-free 800-805-6945 and speak with one of our friendly in-house Account Executives or send us an email to firstname.lastname@example.org.
You will see on our rate sheet is split into many sections. First you`ll find the credit bucket, then you`ll notice that each credit bucket has individual LTV‘s, then each LTV bucket has four choice of pricing. The reason for these pricing choices are due to the fact UGMC is really not interested in points as much as we are interested in the overall yield unlike all the other competitors. This comes in very handy on purchases owner occupied deals and any deal where we might be tight on the loan amount or cash available to be brought into closing. For instance if your client is going to keep the loan for the full term than they will want the lowest rate option. On the other side of the coin, if your borrower is short to close they can pick a higher rate with little or no points as a result of that choice.
Property Types available on our products:
- Single family residences
- 2-4 Residential Units
A lot of our brokers ask us if we will lend on a condo project that does not meet Fannie or Freddie guidelines, the answer is a resounding yes.
Let`s discuss occupancy, unlike the vast majority of hard money or private money lending we actively lend on owner-occupied properties (various by state, please inquire with us which state allows hard money lending on primary residences). Yes we do fund into the covered loan territory and area comfortable doing so, this allows you to make some money as a broker, furthermore, with our ability to have the borrower buy down points with raising the rate you can insure you will actually make a fair wage on this type of loan. Of course we also fund second homes and non-owner occupied transactions which of course don’t have the same limitation on points and fees that can be charged.
Loan Terms – on owner occupied deals we only offer one term because of restrictions of our federal government and that is a 30 year amortization due in seven years, often called a “thirty do in seven”. This program has a 30 year payment and a balloon payment in seven years. A non-owner occupied deals we offer a 30 year due in 5 years and if the borrower only needs to borrow our money for a short period of time than he or she choose the two-year interest only option. If they pick this option it comes with a free no prepay. In this program the borrower can keep our loan for one month all the way to 2 years and pays it off any time with no penalty.
When it comes to loan amounts UGMC lends as low as $100,000 all the way up to $3,000,000. UGMC also considers loans past $3,000,000 on a case by case basis. It should also be known that UGMC has funded residential deals north of $4,000,000.
UGMC will lend to normal borrowers like husband and wife as joint tenants but we are equally comfortable lending to LLC’s, corporations and family trusts. We will not make you to take the property out of those instruments and put it back into the borrower`s personal names.
UGMC will lend on full documentation and we don’t look at 1040’s the same as a bank. We also are comfortable looking at 12 to 24 months of personal bank statements as proof of ability to repay and this would be an alternative documentation on primary residences and second homes. On non-owner occupied properties we offer stated income documentation.
Let`s discuss broker points. If UGMC is receiving two points or less, the broker can charge two points plus a processing fee. If UGMC is charging more than two points than the broker can charge up to five points. Please keep in mind we have done a massive amount of data collecting that 83% of deals closed when the broker charges two points or less. Conversely if the broker charges more than two points the deal has a 90% chance of dying or not even executing the approval at all. Keep in mind on owner-occupied deals there is about two points in these loans for the broker because of the federal lending laws. Our minimum rate today is 8.99% and our minimum cost is 1 point. Please note that if the loan is to a corporation or LLC there will be a special documentation prep fee of $695.
Rate lock – the rate floats until we go to docs. You might ask how often do your rates change and the answer is not very often.
If you have any further questions please feel free to call one of your friendly Account Executives.