Castle Investment: Underwriting Standards

Castle Commercial Mortgage Co. follows strict underwriting guidelines. By underwriting guidelines we mean the process by which we assess risk prior to making a loan.

The guidelines we follow are:

1. Personal FICO score above 680 and credit report review.
2. Personal financial statement, income and balance sheet verified.
3. Appraisal of collateral by an appraiser chosen by us.
4. Professional inspection of the collateral accompanied by a member of our staff.
5. Title insurance commitment review.
6. Review of purchase contract.
7. Line item budget of repairs or construction.
8. Review of experience in real estate investing.
9. Loan to Value completed not greater than 75%.
10. Review of closing settlement statement prior to funding.
11. When a construction loan is made we hire a construction management company to handle construction budget review, completion inspections, lien waivers and disbursements. General contractor is also evaluated for credit and experience.
12. Cross collateral or co-signator credit enhancements as needed and as available.
13. Review of exit strategy whether by sale of collateral or refinance.

These underwriting standards are very similar to those required by commercial banks.
By following these standards we maximize return and minimize problems loans.