Cross Collateralization Loan Application
What is a Cross Collateralization Loan?
Cross collateralization loans are used by lending institutions to add a bit more security to a particular financial transaction. This is achieved through the lender placing a lien on some other piece of real estate or property along with the primary property for which the loan is being dispersed. Hard money lending institutions may sometimes feel that the subject property does not provide enough equity or security in order to grant approval for the loan. Asking for more collateral simply reduces their financial risk.
The Advantages of Cross Collateralization Financing
The most obvious benefit is to the lender who is provided with more security before granting the loan. The main advantage to the borrower is the ease in which this money is granted, allowing you to use the funds for whatever purpose in which they are intended.
Capital Direct Funding offers you these types of loan programs that combine the equity of multiple real estate properties to use as collateral in order for you to easily obtain a Cross Collateralization Loan.
We also have many different types of structured lien releases which allow you to sell or refinance one or more of the collateral properties, subject to certain guidelines of the mortgage agreement.
We can take into consideration the opinion of Realtors regarding the value of the secondary properties as well as utilize professional appraisers in order to meet our guidelines.
All appraisal reviews and requirements are at the sole discretion of Capital Direct Funding. In some cases, a second appraisal or updated review may be required. To facilitate this process, borrowers can simply email the color copies of all appraisals along with their application for review.
Cross collateralization Loans require that we thoroughly understand the amount of remaining equity in the collateral properties. Be sure to include all pertinent information regarding lien amounts.
If you have questions, you can contact us here or call 1-877-273-7823