Interest Rates :  Usually prime + 2.25-6.25% (currently 11-15% as of 3/2000).  Specific rates will vary based on risk and collateral factors.  Residential, owner-occupied, or income supported properties will tend to have lower rates.

Loan Fee : Usually 2-5% of loan amount, included in total loan amount.  There is usually not a prepayment penalty.

Loan Term : One to five years for fixed rates; for terms longer than five years floating rates are utilized.

Administrative and Wire Fee : $320-$520, included in the total loan amount

Costs and Expenses : Borrower pays all costs relating to the loan, including title insurance, escrow fees, recording fees, appraisal fees, permits and filing fees and related items

If the loan originates out of an acquisition of the property, the sale price is often used as the property’s value (if the buyer and seller are dealing at arms length). In refinance situations, an appraisal is often required. In certain circumstances the appraisal requirement may be waived if the property value can otherwise be established and the LVR is well below the maximum.

Subjective Property Analysis : Each property is inspected, in person if in the Portland metropolitan area, and evaluated based on condition, location, functionality and marketability

Borrower Analysis : A limited Borrower analysis is undertaken, usually through a review of a credit report or the financial data portion of a Form 1003, with additional research or data as the circumstances may warrant; if the Borrower is an entity, personal guaranties are usually required.