Article provided by: Westrock Capital Corp
It’s often encouraging to Canadian farmers to learn that Westrock Capital Corp. is 100% committed to the success of our clients. Their core focus is on private mortgage investing in cases when you and/or your company are refinancing existing debt, seeking capital to fund growth organically or via acquisition; Westrock Capital also offers solutions to meet your financial/management objectives via corporate finance/management consulting, or if you just need answers to complex financial situations, Westrock is able to manage that too.
Westrock Capital’s team of professionals are private mortgage investors, commercial/agricultural loan underwriters, bankers, and corporate finance/management consultants with many years of combined corporate experience. Farm loans for bad credit borrowers are often able to be obtained through Westrock as we are dedicated to finding the capital our clients need through the strategic relationships we have built with lenders, other capital providers, as well as with our own private mortgage funds.
Farmers who are not able to obtain financing for their agricultural ventures through more conventional methods are often able to secure farm loans for bad credit borrowers through Westrock Capital, via private money mortgages. Private money mortgages are loans secured by real estate made by a private lender/investor instead of a bank, lending institution or government agency. Private money mortgages loans are short-term (generally six months to two years) asset based loans made to the professional real estate investor for the purchase, rehabilitation or equity cash out of real property.
The decision to lend on a private money mortgage is based on the equity and value of the property being put up as collateral, not on the borrower’s credit, making farm loans for bad credit borrowers easier to obtain. The security for the loan is based upon fact that the loan will be for no more than 65%-75% of the appraised value of the income-producing property. Non-income producing property (generally land or vacant commercial property) can expect a loan to value of no more than 55-65%. Interest rates can be expected to be considerably higher than conventional loans, usually 4-6% above prime with interest only monthly payments.
If there is a problem qualifying for a conventional loan, Westrock can help obtain farm loans for bad credit farmers. This is helpful in cases where the borrower and/or the income of the property do not qualify for a traditional mortgage loan. It might be credit trouble from the borrowers past, excessive debt or the property is not producing a sufficient cash flow to covert the proposed. In these cases the private mortgage lender may be the only available source for funds.
While a traditional lender may look to the property, the borrower and his/her credit, a private money mortgage lender is concerned with the appraised value. As security, the property is producing or can produce sufficient income to pay the note and the value of the property leaving the issues of the borrower's credit or income as a less important factor in providing the loan.
Clients who are looking to secure farm loans for bad credit borrowers can contact Westrock Capital by calling 877.995.1829 and asking to speak with a loan specialist. We'll be happy to answer any questions you may have, and help you decide what the next best step would be in order to qualify for a farm loan.