Frequently Asked Questions

5. How quickly can we close?

At Merchants Funding, because we are a direct underwriter, we can typically close within 5 to 7 business days from the time of application to time of closing. This is provided the title company has received everything they need to complete title work and that the seller is also ready to close, which is not in our control.

6. Do you do “stated income” loans?

We work with hundreds of investors, a large percentage of them self-employed, so we understand that a typical self-employed borrower will have significant expenses/write-offs on their tax returns. We have never done “stated income” loans which have recently come under significant scrutiny; but, since we are a portfolio lender with our own underwriting guidelines, we are able to offer make sense decisions. As a result, we will often look at a borrower’s gross income reported on tax returns, prior to expenses and writeoffs, to qualify them. Additionally, we can go up to a 65% debt to income ratio, making it easier to qualify for than a traditional loan. Also, if a borrower has little income, but significant liquid assets, such as checking, savings, mutual funds, stocks, etc., we can often qualify them on the basis of their assets instead of their income.

7. Do you allow properties to be titled in entity names, such as limited liability companies, partnerships, corporations, etc.?

Yes. The buyer can write the purchase contract in the entity name so that title to the property will be held in the entity name. We then require the individuals signing on the loan to guarantee the loan. Being able to close in an entity name is not something most lenders can do, but since we originate and retain all of our loans, we can offer unique benefits to our investors.