Writing a financing proposal for lenders

15 Replies

Hi All,

I'm preparing to approach major lenders back home for financing on my second single family unit and I'm battling to write a financing proposal I'd be happy to share. Anyone care to share some examples of well written proposals for inspiration?



What type of property is it? Usually single family loans don't need those documents since they are regarded as residential. Did loan officer or broker ask for this?

@Eugene Conradie

I write a letter to the lender outlying my request every-time.  I have uploaded several of my letters in the BP fileplace.  A few of those letters were written directly to the letter.  I would submit the letter, photos of the property and application all together in one package.  The key is to impress the lender with a complicate package.


Originally posted by @Zach Liu :

What type of property is it? Usually single family loans don't need those documents since they are regarded as residential. Did loan officer or broker ask for this?

 Agree with statement above. As a loan officer unless I asked for it OR you are requesting non traditional funding (hard money) this type of paperwork is not usually needed for a purchase of one single family. Now if your looking at non traditional lending, have maxed out with your bank and are looking for your 5th loan ( they usually stop at 4)  or are doing something like a portfolio lending scenario that would be a different story.  I have to add that in most cases a completed 1003 and a load of pictures will tell me most of what I need to know. There is of course things like credit checks and inspections that still need to be done. Please feel free to contact me with any questions.

This post has been removed.

Originally posted by @Account Closed :

@Eugene Conradie

 you should write a 1-2 paragraph executive summary on the deal giving the vital details only, including what you are bringing to the deal, who you are, your experience, the #s on the deal and why this is a good deal. 

If you are contacting someone that tells you they are a hard money lender or private lender and they ask for a 1003... run , run fast. 99.999% of them are mortgage brokers that do home loans and they dont realize a 1003 doesnt tell you what a lender that does hard money or private money is looking for to make a decision

 Agree again 1003 are for traditional lending purposes. 

Thank you for the responses gentlemen. It's a single family in a sectional title and I'm going the traditional mortgage financing route. I will however also be talking to a portfolio lender and last time I spoke to them they wanted a tonne of information, so I reckoned I'd put together a proposal that would answer all their questions.

It may sound strange that I'd be talking to a portfolio lender for only my second purchase, but I have a few unique circumstances that make me a little less loved by the major banks - I'm a South African working outside the country and married to a non-South African citizen...probably more than anyone would care to know about me, but I thought I'd clear that up before I get questioned.

Anyway, thanks again for the input, I will go with Ken's advice and write something up.

@Frank Romine , I had a look at your letters in the fileplace a minute ago, thanks for sharing. I really like the simplicity of your approach, very direct and to the point; it made me realise how pitifully I would have over complicated things with what I had in mind.

That's precisely the kind of advice I needed, thank you sir!

@Eugene Conradie

Simplier is better with lenders.  They want the data, no fluff.  Lenders are buried with loan requests.  We want them to keep our paper work at the top.


@Eugene Conradie - the thing you have to understand is that before you're somebody, you are a nobody, and bankers don't typically like to waste time with nobody...

So - you have to compensate. You have to create a perception of yourself which may not yet be supported by reality, but makes you stand out among the crowds of nobodys banging on banker's doors. Here are a few thoughts:

1. Before you are ready to create a proposal, you need to understand what the banker wants - what are the requirements? What's the DTI? What's the DSCR? What type of projects do they have appetite for?

2. Next, you cater your presentation to their guidelines and preferences. There are 2 parts:

a. Why you?

b. Why this project?

Above all, your presentation needs to make it easy for the banker to do his/her job!

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