What underwriting criteria does B2B Trust use when deciding to lend to an individual?
Because every individual’s situation is unique, we take a holistic approach to underwriting. Some of the key criteria we consider include: • Total debt service ratio (TDSR): the applicant’s regularly recurring monthly debt payments (including the new loan payment) should be less than 40% of their gross monthly income. • Net worth: the applicant’s tangible net worth is calculated by subtracting their total outstanding liabilities (debt obligations) from the total of their verifiable assets. This amount should be a minimum of 1 times the loan amount. For loans between $100,000 and $250,000, net worth should be 1.5 times the loan amount. For loans greater than $250,000, net worth should be 2 times the loan amount. • Credit history: all obligations must be up-to-date and paid as agreed – no bankruptcies, collections or judgements. Note that TDSR and net worth requirements are applicable to 100% Loans or to 3 For 1, 2 For 1 and 1 For 1 Loans greater than $250,000. TDSR will be calculated fo
Because every individual’s situation is unique, we take a holistic approach to underwriting. Some of the key criteria we consider include: • Total debt service ratio (TDSR): the applicant’s regularly recurring monthly debt payments (including the new loan payment) should be less than 40% of their gross monthly income. • Net worth: the applicant’s tangible net worth is calculated by subtracting their total outstanding liabilities (debt obligations) from the total of their verifiable assets. For 100% investment loans up to $100,000, net worth should be 1 x the loan amount. For 100% investment loans between $100,000 and $250,000, net worth should be 1.5 x the loan amount. For 100% investment loans greater than $250,000, net worth should be 2 x the loan amount. • Credit history: all obligations must be up-to-date and paid as agreed – no bankruptcies, collections or judgements. TDSR for 100% Loans should not be greater than 40%. TDSR will be calculated for 3 For 1, 2 For 1 and 1 For 1 Loans
