Underwriting Guidelines

At Mortgages Ltd. we take a different approach to underwriting loans. Our focus is not only on the character and integrity of the borrower, but also the borrower's experience and capacity for repayment and the equity in the property. The loan process begins with a loan officer at Mortgages Ltd. conducting an initial telephone interview with the developer, principal, or mortgage broker. Requirements for us to consider any loan include, but are not limited to: desirable project location, project feasibility, significant borrower experience, borrower's equity or cash infusion in the project, credit worthiness and a review of financials. Mortgages Ltd. does not underwrite "no doc" or "stated income" loans, as it prevents us from having a full picture of our borrower's financial capacity.

At Mortgages Ltd., an emphasis is placed on equity in the property. Equity may be in the form of cash, property appreciation, subordinated debt or additional collateral. The following are some of the criteria that may used to determine borrower creditworthiness and project feasibility:

  • Character of Borrower
  • Borrower Experience (resume)
  • Recent Business Financial Statements
  • Recent Personal Financial Statement
  • Credit references and bank references
  • Marketing plans for the property
  • Marketability of proposed project


Mortgages Ltd. utilizes a variety of sources to gather information about the property underlying a loan. Sources of property information include the county assessor's data, MLS data, local real estate brokers, and planning and zoning offices. Mortgages Ltd. makes a final determination of the condition of the property through a property inspection.

Property Valuation

Property values are based on a proprietary evaluation process developed by Mortgages Ltd. Appraisals are required on all loans within 90 days after close of escrow. Our Underwriters use a variety of resources to establish "wholesale" or "quick sale" values, including market comparables, knowledge of local market conditions, evaluation of the competitive factors related to the subject property, property inspections, etc.