Velocity Mortgage

17 Replies

I have actually just spoken with someone from velocity if fort washington, pa.  I to am interested in there stated income loans.  I am also wondering about their services, and if there is anyone who has used them.  I have found only 5 reviews. 2 bad, and 3 good. Also there is a bloomberg article. http://www.google.com/url?sa=t&source=web&cd=1&ved...

This has me wondering if they are a reputable business or if my info.  Will be jeopardized, and i will be a victim of some type of identity theft. 

Any insight on velocity, along with any other stated loan brokers that members have had previous experience would be greatly appreciated.

Hello

I have dealt with Velocity on a number of deals....Yes they are legit but after we used their AMC to get an appraisal they decided to NOT accept the valuation and said their AVM called for a lower value. A week later we got the memo (see below) that explained what was going on....but they were not forthcoming in their explanations of the valuation drop. The company had decided to cut their LTV's and were not telling us ....rather they quibbled over accepting their own appraisal valuation.

We chose lender B as I have 4 Velocity Capital Competitors each with its own wrinkles and strengths. 

Between Xmas and News Years Velocity sent out a memo stating they were cutting their LTV's to 60% from 75% and raising their minimum score to 720 up from 680. Deals not yet closed would NOT be grandfathered....and the rules were effective immediately. 

I liked using then as they would price down to 6.25% on a 30 year  with a 5 year adjust.  So the memo was a surprise and we had to scramble to Lender B.

So yes their are 4 lenders like Velocity I know of...and they all offer 30 year Amortizations on a Stated (No Doc) loan. All of them base the loan on a decent credit score and the cash-flow of the Rental to cover the mortgage,  As these are hedge funds or commercial lenders they price well UNDER hard money and will do loans for a LLC or a Foreign national.

  • Expect rates between 6% - 7.5% 
  • LTV's between 60-80% ( Score driven)
  • DSCR expectations of 1.20X - 1.30X
  • 30 year Amortization with 5 or 7 year Adjust
  • Prepays 3-5 years Declining or Yield maintenance.

Velocity used to also do Office and Warehouse and Multifamily under similar terms....Retail LTV 's are lower for most of these as Retail is a loosing proposition.

Email me for specifics...

 Warmest regards

Richard Scholtz

My two bits worth discounted for inflation is now only a penny...........

I've got as many references as you need Tzvi.  Even though I'm in LA, I close a ton of deals in NY as well, so feel free to message me and I'll give you names/numbers.  I've also been with Velocity for 2 1/2 years and have worked with many of the top executives here back in the subprime boom when I was with New Century, WMC, Encore, etc.  We are a very legit player in this market, I assure you. 

In my experience with Velocity they have been pretty weak. Too bad ... I have tried to send them a great deal of business.

Do you honestly think we don't want your business Steve?  Unfortunately once you get to our space, and even hard money, we say "No" to deals a lot more than "Yes".  I don't get paid a salary, so I wouldn't be here today if we didn't close loans.  I can tell just by your signature that you probably deal with more fix & flip investors, and we're absolutely not ideal for those types of scenarios.  We are a buy & hold lender so that's why we probably haven't been able to do a deal with you yet. 

I apologize if you felt shunned by our niche/boxy product, but it's always best practice to give you a quick and confident "I'm sorry, we can't do this deal.." than it is to drag you through the mud on a deal that we can't close in the end. 

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Disclosure: Chief Marketing Officer

Hey, guys.  I'm fairly certain the company is legitimate.  They pay me to work there. :)

We have over $2.5 billion in investment and commercial property loan originations, have issued eight securitizations since 2004, and employ over 200 people in eight offices nationwide.

We are a non-bank, specialty finance company that focuses exclusively on financing residential 1-4 investment, multi-family, mixed-use and small balance commercial properties.  We offer asset-based mortgage programs based on the value of the property and its revenue-generating potential, not owner-occupied residential properties.  Therefore, residential-based terms like "no income verification" and "stated income loans" don't apply to the investment properties we finance.  We review the property's business income, not the personal income of the investor.

Think of us as an alternative investment and commercial property lender you can turn to when you have a W-2 employee, self-employed investor or small business owner who is tough to qualify for traditional loans.  Since we sit between banks and hard money lenders, expect rates that fall between them.  

While we offer flexible long-term financing programs, think of us as a temporary solution that will help your tough-to-qualify investors acquire the property they want while you help them establish a stronger credit history and fix any business income reporting issues so you can move them to a traditional loan down the road. We also offer short-term, interest-only solutions for fix-and-flip investors.

Hope this helps.  If you have any questions, visit our website.

Disclosure: Chief Marketing Officer

To answer your questions, Velocity has been in business since 2004 and has a $2.5 billion loan portfolio.  Just search for Velocity Mortgage Capital and you will find a link to the website with more information.  

Disclosure: Chief Marketing Officer

When I see posts like this from three years ago in search results and you don't allow me to post a response, I begin to wonder if BiggerPockets is legit.  You are simply using our brand name to increase your own search rankings and drive traffic to your website through misleading information.

If you are going to provide a social media forum, you have a responsibility to make sure the posts on it are accurate so your readers are not mislead or provide a means for companies to respond without censorship.  

Velocity Mortgage Capital has financed over $2.5 billion in investment property and small commercial mortgage loans.  We've been in business since 2004, long before others in our industry.  If you need more proof, check out our website at velocitymortgage.com, call us at (866) 505-FUND or visit our Facebook or LinkedIn pages where you will find positive comments from our clients.  We will answer the phone and will do our best to help you fund your tough-to-qualify real estate investors.  

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